Carmoola, a London-based web car financing platform, is revolutionizing the industry and has just raised £8.5 million in a Series A round and £95 million in debt to do so.
About Investment
With participation from previous investors European early-stage VC VentureFriends and InMotion Ventures, the investment arm of Jaguar Land Rover, the round was led by US-based fintech specialists QED Investors (backers of Klarna, ClearScore, Nubank, and more).
Additionally, it comes with a debt line from Natwest, positioning Carmoola for quick expansion in a market with a value of £120 billion in the UK alone.
Carmoola: Car Financing Platform
Aidan Rushby, Amy McKechnie, and the Ukrainian co-founders Roman Sumnikov and Igor Gordiichuk founded Carmoola in 2021.
In the past, Carmoola has received funding from well-known businesses like Revolut, Marshmallow, Clearscore, and Monzo, as well as Dan Cobley, the former managing director of Google (UK and Ireland).
Customers using the broker commission-free motoring finance app can rapidly calculate how much they can borrow, and by increasing the team size to 20, the company will continue to grow. To promote greener options, the UK fintech will also roll out green discounts soon.
Used-car financing couldn’t be more prepared for a fintech transformation, according to Carmoola CEO Aidan Rushby. Customers want the freedom to shop anywhere they want, knowing exactly how much they can spend, without having to turn in reams of paperwork and paystubs.
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Comments:
“Excessive rates, contrived commissions, and subpar customer service are cornering disgruntled customers, but the root of the issue lies in the financing process itself. Most crucially, car financing is only obtained after the consumer has fallen in love with the car they want, which completely puts them on the defensive. It is full of paperwork, drawn-out procedures, and a lack of certainty. That is, up until now.
“The car finance industry has been caught off guard by the new neo-car finance brand Carmoola, which supports the consumer at every step of the process,” according to Yusuf Zdalga, Partner and Head of Europe at QED Investors, the financier of unicorns Remitly and NuBank that led the round into Carmoola. “Carmoola is on pace to rule the auto finance industry with a revolutionary method of shopping.”
The first completely automated flexible car financing platform is called Carmoola. It determines an acceptable credit choice and an affordable budget in 60 seconds.
In addition, a virtual card is created that can be used to buy an automobile offline or online. Additionally, customers can use the Carmoola app to raise, pause, or make single payments without incurring any fees.
Drivers can quickly change terms and payments in the app thanks to the company’s better financing options, which it also provides along with discounts on a select number of cars.
Additionally, it asserts to be the only finance company to provide incentives for selecting environmentally friendly vehicles, such as reduced APRs for electric cars.
