12 April 2022, LONDON: Turning automotive finance upside down by putting consumers in the driver’s seat, Carmoola [carmoola.co.uk]has grown a recently launched automotive fintech £ 27 million in investments from the Jaguar Land Rover investment fund, InMotion Ventures, Adventure friends, BCI and based in California Businesses of the Clock Tower.
The seed round also included a number of high profile angels who have supported companies such as Revolut, Marshmallow, Clearscore and Monzo, including former Google MD (UK and Ireland), Dan Cobley.
Founded by Britons, Ukrainians and former Movebubble and Zoopla executives: Aidan Rushby, Amy McKechnie, Roman Sumnikov and Igor Gordiichuk; Carmola allows consumers to make budget and financing decisions in sixty seconds, giving them the freedom to purchase a vehicle instantly with a virtual card online at places like Cazoo or at a car dealership.
By eliminating middlemen, saving buyers with better value financing and discounts for choosing eco-friendly cars, Carmola it also breaks the rigidity of traditional contracts, allowing drivers the flexibility to adjust terms and payments simply in-app.
The London-based startup is encouraging consumers to rethink how they pay for a second-hand car, understanding what they can afford first, before starting the search.
The investment will be used to develop the product and start the initial stages of the business.
During the end of summer 2020, Aidan Rushby took the opportunity to take a long break in Mallorca. With the pandemic in full swing, it made sense for her to drive from the UK and take the ferry from mainland Spain to the Balearic island with her sausage dogs.
What should have been a simple second-hand car financing process turned out to be a cumbersome experience for the consumer.
“Like many people, I went there with no clear idea of how much I should have spent or could have afforded.”said Aidan Rushby, CEO of Carmoola.“You find ‘the right one’ and then you have to go through this confusing, paperwork-laden and painfully slow process to see if you will actually be approved for it. “The process is interrupted. Rather than second thoughts, your budget should be the first thing on your list. “There is an incredible fintech revolution underway. Still, car financing seems to have been forgotten. It’s like a complete old banger. “The freedom to go shopping anywhere, knowing what you can spend, without sending reams of forms and pay slips, immediately puts the consumer in control of the car purchase.”
With the loan secured against the value of the vehicle, which is checked for accident history, mileage adjustments and pending finances, the service offers an additional level of guarantee to protect the consumer.
Drivers are given a virtual card. Once they find the car, they can pay instantly, online or at any car dealership with Apple / Google Pay.
“Although the new online car markets have made car buying easier, they are still using traditional car lenders who stay in the dark age and consumers are paying for it.” continues co-founder Amy McKechnie.
“The subscription is made and manually reviewed on a case-by-case basis. The clunky off-the-shelf loan management systems prevent businesses from solving problems and automating processes, which means more manual labor is required for loan maintenance – all of this cost is passed on to the consumer. “Existing lenders also pay 15-20% of the loan amount in brokerage fee. And who do you think pays for it?
In the UK, 7.5 million cars were purchased last year with an average price of £ 13,705, while the UK market is worth £ 120 billion.
Yet only 19% of consumers use the finance for this transaction, and only 2% of these transactions currently take place online, creating huge growth potential.
Rushby could see that the right fintech platform, built on fully proprietary technology, would eliminate middlemen and offer consumers fast, better-value, flexible and transparent car finance.
And he knew exactly who to turn to to bring his vision to life; Amy McKechnie an expert in Ukrainian products and marketing and tech geniuses, Roman Sumnikov And Igor Gordiichukwho all met in their previous business.
Get rid of the wasteful paperwork of the past, Carmola calculates an affordable and approved credit limit in just sixty seconds, using thousands of data points, providing this with fully automated intelligent decision-making technology.
Disruptive automotive fintech also offers additional consumer benefits such as flexible in-app financing; so you can increase, suspend or make one-off payments without incurring penalties or charges, breaking the mold of traditional rigid contracts.
It is the only company to offer green incentives such as lower APRs on electric vehicles to encourage the adoption of clean air cars, carbon footprint calculators, and pass savings from ESG debt financing to consumers.
With the ambition of becoming the financial super app for your car, Carmoola intends to offer insurance and a way to spread the costs of tires, maintenance and service.
Alex Smout, principal of InMotion Ventures, “So far, car financing has been clunky and intimidating, leaving many 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 wider range of vehicles. We look forward to supporting Aidan and his team as they grow their revolutionary approach to purchasing. “
Apostolos Apostolakis, Partner of Venture Friendshe added, “Consumer fintech has been driven by better user experience, but the process of applying for used car financing is opaque and frustrating. Carmoola has turned the process into a user-centric app that we are confident will become the preferred option for consumers to finance their next car. “
With the used car market the largest retail market in Europe, the way to go seems clear for Carmoola to drive revolutionary home car financing.
For more information contact: [email protected]
About CarmoolaYou no longer have to waste time searching for the perfect car, only to find that you can’t afford it, Carmoola offers users an immediate pre-approved budget and a virtual card for immediate purchase. The freedom to shop, knowing what to spend, without sending reams of forms and pay slips, puts the consumer in control of the car purchase.
Founder Aidan Rushby (CEO) has extensive experience in fast-moving and expanding businesses, having founded the Movebubble home rental app.
Co-founded by Amy McKechnie (Director of Product and Marketing), Rushby is also joined by Ukrainian co-founders, Roman Sumnikov, Chief Technology Officer and Igor Gordiichuk, Chief Information Officer.
Rushby has raised over £ 10 million in venture capital funding for his former start-up and is well versed in team development, marketing and product development.
Carmoola is the new way to pay for a car in just three simple steps.
Carmoola offers further advantages for the consumer; better value financing that eliminates middlemen and flexible in-app financing, so you can increase, decrease or suspend payments without incurring penalties or charges.
Carmoola is the only company to offer green incentives such as lower APRs on electric vehicles to encourage the adoption of clean air cars, carbon footprint calculators, and pass savings from ESG debt financing to consumers.
The company was registered in November 2020. Product development began in March 2021. The consumer app was first launched in March 2022. Available on iOS and Android.
Carmoola Secures £ 27m Seed Investment From Investors Including InMotion Ventures – UK Technology Investment News
Source link Carmoola Secures £ 27m Seed Investment From Investors Including InMotion Ventures – UK Technology Investment News