UK car finance fintech Carmoola lands £15.5m in equity funding
London-based fintech Carmoola, which provides consumers with car finance solutions, has secured £15.5 million in equity funding from multiple investors.
Carmoola secures £15.5m equity funding
The investment saw participation from QED Investors, VentureFriends, InMotion Ventures (the investment arm of Jaguar Land Rover), AlleyCorp, and u.ventures.
The fintech start-up previously secured a £95 million debt facility from NatWest and an £8.5 million Series A round in February 2023. The fresh investment takes Carmoola’s total debt and equity funding to date to £146 million.
Launched in March 2022, Carmoola offers personalised finance options directly to consumers. Its platform provides buyers with a budget, generates a free history check on their selected car, and allows payment to be made online or in the showroom using a Carmoola virtual card. The start-up is authorised and regulated by the UK’s Financial Conduct Authority (FCA).
“Carmoola came about because we could see that the used car finance market was broken, but the status quo suited traditional lenders just fine, so nobody was doing anything about it,” explains Aidan Rushby, co-founder and CEO of Carmoola.
“We saw the opportunity to do better and rebalance the situation in favour of the consumer, and our financial backers shared this vision. Now that we have proven our concept we are ready to bring our product to even more people.”
Rushby claims the Carmoola platform has helped support the purchase of more than £46 million worth of cars. With the new funding, it plans to bring its offering to more car buyers as it looks to chart a path to profitability.
