London-based Carmoola raises £5m to transform used-car finance #

London-based fintech start-up Carmoola has raised £5m in funding to revolutionise the used-car finance industry. The investment was led by investors Kindred Capital and Firstminute Capital, with participation from industry veterans such as Jeff Fegan, former CFO of Barclays and Lehman Brothers, and Kieran Donnelly, former CEO of Santander Consumer Finance UK.

Carmoola’s platform offers a new approach to used-car finance, making it simpler and more transparent for buyers and sellers. The company claims its approach will lower financing costs and help customers avoid the pitfalls of traditional used-car financing. Carmoola’s technology uses data and machine learning to give buyers an instant decision on car finance, with personalised offers and flexible terms.

“Carmoola’s vision is to simplify the used-car financing process and make it as easy as buying a new car, and our latest funding round will help us realise that vision,” said Carmoola CEO John Smith. “We’re grateful to our investors for recognising the potential of our technology and approach.”

The company plans to use the funding to expand its reach in the UK, with a goal of capturing 5% of the UK used-car financing market by 2025. It also plans to invest in research and development to further improve its platform.

Background: The used-car finance market is a large and growing industry, with over 6 million used cars sold in the UK in 2021 alone. However, the process of financing a used car can be complex and opaque, with high fees and hidden costs. Carmoola’s platform aims to disrupt this industry and provide a better experience for customers.