British-Ukrainian car finance start-up Carmoola attracts £27m funding

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An online car finance start-up created by a team of former UK and Ukrainian executives from Movebubble and Zoopla has attracted £27m in venture capital.

Carmoola has raised funds through investments from sources including Jaguar Land Rover (JLR) investment fund InMotion Ventures, VentureFriends, BCI and California-based Clocktower Ventures, and plans to use it to roll out an app that will deliver auto finance approvals in 60 years. seconds and facilitate flexible repayments.

Former Google UK and Ireland managing director Dan Cobley was among the investors in the company founded by Aidan Rushby, Amy McKechnie, Roman Sumnikov and Igor Gordiichuk.

McKechnie said: “While new online car marketplaces have made it easier to buy the car, they still use traditional car finance lenders that remain in the dark ages and consumers are paying for it.

“Underwriting is done and reviewed manually on a case-by-case basis. Clumsy out-of-the-box loan management systems prevent businesses from troubleshooting and automating processes, which means more manual labor required in loan servicing – all that cost is passed on on the consumer.

“Existing lenders also pay 15% to 20% of the loan amount in brokerage commission. And who do you think pays for it? »

London-based start-up Carmoola claims to “eliminate the middleman”, save buyers money through better value for money and offer discounts for choosing green cars while breaking the rigidity of traditional contracts.

With loans secured by the value of the vehicle, which is checked for accident history, mileage adjustments and exceptional financing, the service claims to give an extra layer of insurance protecting the consumer.

After approval of a credit limit in just 60 seconds, motorists then receive a virtual card with which they can then pay instantly, either online at any car dealership with Apple/Google Pay.

Carmoola also claims to offer consumer benefits, such as flexible in-app funding, allowing users to increase, pause or make one-time payments without incurring penalties or fees.

Alex Smout, Director of InMotion Ventures, said: “Auto financing so far has been clunky and intimidating, leaving many people frustrated and trapped.

“Carmoola has reinvented the way people pay for cars, emphasizing 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 develop their groundbreaking approach to procurement.”

VentureFriends Partner Apostolos Apostolakis said, “Consumer fintech has been driven by an improved user experience, but the process for applying for used car finance is opaque and frustrating.

“Carmoola has transformed the process into a user-centric app that we believe will become consumers’ preferred option for financing their next car.”

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