Turning car finance on its head putting consumers in the driving seat, Carmoola, a newly launched motoring fintech has raised £27M in investment from Jaguar Land Rover’s investment fund, InMotion Ventures, VentureFriends, BCI and California-based Clocktower Ventures.
The seed round also included a host of high profile angels that have backed companies such as Revolut, Marshmallow, Clearscore and Monzo, including the former MD of Google (UK and Ireland), Dan Cobley.
Founded by British, Ukrainian and former Movebubble and Zoopla executives: Aidan Rushby, Amy McKechnie, Roman Sumnikov, and Igor Gordiichuk; Carmoola empowers consumers with a budget and finance decision in sixty seconds, giving them the freedom to buy a vehicle instantly with a virtual card online at places like Cazoo or at a car dealership.
Cutting out the middleman, saving buyers money with better value finance and discounts for choosing green cars, Carmoola also breaks the rigidity of traditional contracts, allowing motorists the flexibility to adjust terms and payments simply in-app.
The London-based startup is encouraging consumers to rethink the way they pay for a second hand car – understanding what they can afford first, before beginning their search.
The investment will be used to develop the product and launch the initial stages of the business.
During late summer of 2020, Aidan Rushby took the opportunity to take an extended break in Mallorca. With the pandemic in full swing, it made sense to drive from the UK and catch the ferry from mainland Spain to the Balearic island with his sausage dogs.
What should have been a simple process of financing a second hand car turned out to be an unwieldy consumer experience.
“Like many people, I went into it without a clear idea of how much I should spend or could afford.” said Aidan Rushby, Carmoola’s CEO.
“You find ‘the one’ and then have to go through this confusing, paperwork-laden and painfully slow process of seeing if you’ll actually be approved for it.
“The process is broken. Rather than the afterthought, your budget should be the first thing on your list.
“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.”