Carmoola Secures $381M ABS Facility to Expand UK Car Finance Operations#

Details of the Funding and Strategy#

• Funding Structure: The $381 million ABS facility, equivalent to £300 million, replaces early-stage corporate debt with a scalable, cost-effective structure, reducing financing costs and increasing lending capacity. This brings Carmoola’s total funding to over$540 million.LinkLink
• Direct-to-Consumer Model: Carmoola’s mobile app allows users to check eligibility, receive a provisional loan budget in under a minute, and complete financing without brokers or dealerships, offering hire purchase and personal contract purchase options with real-time credit assessments.Link
• Market Impact: With customer numbers doubling year-on-year, Carmoola aims to capture a larger share of the UK’s £100 billion used car finance market, projected to grow to £190 billion by 2027. The company expects to deliver billions in loan originations over the next five years.LinkLink

Leadership and Partner Perspectives#

• Aidan Rushby, CEO of Carmoola: Emphasized the deal as a milestone, stating, “By securing this facility, we can extend the benefits of our fair, fast, and transparent finance to even more car buyers across the UK,” highlighting the platform’s focus on empowering consumers with better deals.Link
• George Ross, NatWest: Expressed confidence in Carmoola’s innovative model, noting, “This partnership reflects our commitment to scaling sustainable, customer-centric lending solutions,” with the facility including associated hedging to support growth.Link
• Loic Fery, Chenavari: Highlighted the scalability of Carmoola’s model, stating, “This $381 million facility underlines our confidence in Carmoola’s potential to reshape the UK car finance market,” with plans for long-term collaboration.Link

Risks and Opportunities#

• Opportunities: The funding enables Carmoola to offer competitive, dealership-beating rates (as low as 6.9% APR) and streamline the car-buying process, enhancing customer control and transparency. Its recognition by Sifted as one of the UK’s fastest-growing startups and Bloomberg’s 2025 watchlist underscores its market traction.LinkLink
• Risks: Regulatory shifts in the car finance market could pose challenges, though Carmoola’s FCA authorization (958057) and CIFAS membership mitigate compliance risks. Competition from traditional lenders and other fintechs may pressure growth if market dynamics shift.LinkLink

Conclusion#

Carmoola’s $381 million ABS facility from NatWest and Chenavari Investment Managers marks a pivotal step in scaling its direct-to-consumer car finance platform in the UK. By tripling its debt capacity, the fintech is well-positioned to deliver affordable, transparent financing to a broader market, capitalizing on the growing £100 billion used car finance sector. With strong institutional backing and a customer-first approach, Carmoola is poised to redefine car financing, though it must navigate regulatory and competitive challenges to sustain its rapid growth trajectory.