Carmoola — Why VF Invested (again!)

Alistair OwenJanuary 25, 2024

VentureFriends have been supporters of Carmoola since (almost) the beginning, backing Aidan and the team before they launched, and we have invested in every funding round since.

We have been continually impressed by their execution and it was no surprise when they raised a further £15.5M to continue their journey to build the best customer experience in car finance.

You can read our thoughts on why we originally invested here, but read on to learn how things have developed since 2022.

Lean, High Performance Team

When we first met Aidan, he was adamant that having a tech-first approach would enable building a finance company that had a very small back office. His rationale was that the majority of the tasks associated with originating and servicing car finance could be automated in modern fintechs.

This has proven to be true. The consumer-facing app is slick and usually requires no intervention to go from download to obtaining a loan. The loan management system has been built from the ground up and has allowed Carmoola to process thousands of applications every day with only a handful of employees working in support.

Even in collections, where often there are many complex situations to handle, the majority of the processes are automated whilst maintaining a great customer experience.

Customer Obsessed

Carmoola are 100% focused on providing the best experience for their customers. The application process has been built with the UX you’d expect from a modern fintech, allowing you to obtain finance within minutes instead of days or weeks. This gives Carmoola customers the confidence that they can take their budget and find their perfect used car, often the same day!

Over a thousand five star reviews are a testament to the customer love that Carmoola receives, and it’s clear that they often go above and beyond what’s expected versus a typical used car lender.

Grit, Hustle & Drive

The ride hasn’t always been smooth for the team at Carmoola, and they’ve had plenty of roadblocks placed in their way.

A few weeks before launch, Russia’s invasion of Ukraine necessitated an evacuation of many of the tech team across the border to Poland. It’s a credit to Igor, Roman and the rest of the team that they have been able to continue to deliver consistently and to a high standard, despite a harrowing situation at home.

Carmoola also has had to adjust to a changing macroeconomic environment, from near zero interest rates and a booming used car market, to 10-year interest rate highs and a fall in consumer confidence. Carmoola’s analytical approach to risk management and superior customer experience has enabled them to stay competitive, where legacy finance firms struggle with under-performing loans and historic complaints.

It’s for these reasons that we’re thrilled to continue supporting Carmoola in their journey to revolutionise used car finance and we can’t wait to see what they achieve next!

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Supported by InnovFin Equity, with the financial backing of the European Union under Horizon 2020 Financial Instruments and the European Fund for Strategic Investments (EFSI) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.

Attention! This investment falls outside AFM supervision. No licence and no prospectus required for this activity!