Brand new UK car finance fintech Carmoola has raised £27 million of seed funding.
Carmoola will use the seed funding to develop its car finance product and launch the initial stages of the business.
The fintech claims to be able to deliver a finance decision within 60 seconds via a smartphone app. Armed with a Carmoola card, users can then purchase their vehicle online or visit a dealership.
Carmoola provides finance secured against the value of the vehicle, which is vetted for accident history, mileage adjustments and outstanding finance, while bypassing traditional underwriting processes, loan management systems and brokers.
It also plans to offer insurance and buy now, pay later options for tyres, maintenance and servicing in the future.
Aidan Rushby, chief executive officer and co-founder of Carmoola, commented: “There’s an incredible fintech revolution going on. And yet, car financing seems to have been forgotten about. It’s like a complete old banger.”
“The freedom to go shopping anywhere, knowing what you can spend, without sending off reams of forms and payslips, puts the consumer immediately in control of their car purchase.”
Jaguar Land Rover investment fund InMotion Ventures, VentureFriends, BCI, Truesight Ventures and Clocktower Ventures participated in the seed funding round.
Alex Smout, principal at InMotion Ventures, said: “Up to now car finance has been clunky and intimidating, leaving many feeling frustrated and trapped. Carmoola has reinvented how people pay for cars, focusing on transparency and flexibility to give consumers confidence in the process and access to a greater range of vehicles.”