U.K.-based online automotive company Carmoola has raised £15.5 million ($19.6 million) in VC funding, according to a news release.

The fintech that specializes in B2C consumer car finance was set up in March 2022 by a team featuring former Movebubble executive Aidan Rushby. It previously raised £8.5 million in a Series A funding round and a £95 million debt facility in February 2023. It’s total funding so far is £146 million.

The funding will be used to scale up Carmoola’s position within the U.K.’s £100 billion used car finance market which is predicted to grow to £190 billion by 2027 and to accelerate its path to profitability.

Carmoola said its funding has helped consumers buy £46 million of cars so far. This funding round featured U.S.-based fintech specialists QED Investors, VentureFriends, InMotion Ventures, the investment arm of JLR, New York-based investors AlleyCorp and Kyiv-based u.ventures.

“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,” said Aidan Rushby, co-founder and CEO of Carmoola.

“We saw the opportunity to do better and rebalance the situation in favour of the consumer. Now that we have proven our concept, we are ready to bring our product to even more people.”

The U.K.’s financial regulator, the FCA, this week announced it will further investigate whether commission payments made by motor finance providers to car dealers and other brokers resulted in U.K. consumers being treated unfairly.

 

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