The funding will be used to continue to scale the business, support “rapid” customer adoption, and grow its team
UK car finance fintech Carmoola has raised £8.5m in a series A round and £95m in debt facility, provided by NatWest.
Carmoola aims to “revolutionise” the way people buy cars, with its neo car finance product that is “effortless” and reduces the time taken to purchase a car from days to minutes.
The funding will be used to continue to scale the business, support “rapid” customer adoption, and grow its team.
The round was led by US-based QED Investors, with participation from existing investors VentureFriends and InMotion Ventures, the investment arm of Jaguar Land Rover.
Carmoola launched last year after raising £27m in seed funding.
Its proprietary technology provides buyers with a budget, generates a car history check, and allows payments to be made online and in a showroom.
Aidan Rushby, chief executive officer of Carmoola, commented: “Used-car finance couldn’t be more ready for a fintech revolution. Consumers want the freedom to go shopping anywhere, knowing what they can spend, without sending off reams of forms and payslips.
“Frustrated consumers are being put in a corner with excessive rates, manipulated commission, and poor customer service, but it’s the very process of getting finance that is at the heart of the problem.”
Yusuf Özdalga, partner and head of Europe at QED Investors, added: “Having not adapted to modern expectations for the consumer, the car finance industry has been caught off guard by the new neo-car finance brand Carmoola, who champion the consumer at every part of the process.”