Australian car loan platform, CarClarity has closed a $3 million Series A funding round led by Equity Venture Partners (EVP).
The round also included existing investors ex-Prospa Capital Management Advisor, Raj Bhat, and Oxygen Home Loans Managing Director, early backer of Harmoney andWeMoney, Ben Taylor.
Following its AU$1 million seed raise in March 2021, CarClarity saw a 600 per cent growth in revenue, with over30,000 customers to date using the platform to compare matched lending options.
The new funding will enable CarClarity to pioneer anew online car buying service that reinvents traditional in-person car buying.It will also enhance the existing financing product by analysing data and risk to help buyers to receive instant loan approvals within the platform. These enhancements will seek to disrupt further Australia’s AU$37 billion motor vehicle financing market.
At a time when supply chain constraints are frustrating consumers due to vehicle shortages, CarClarity’s upcoming car buying offering claims to smooth the online shopping experience. With access to280 Australian car dealerships already, the funding will help CarClarity expand this ahead of officially launching its offering later in 2021.
CarClarity’s platform was the first of its kind to launch in Australia in March 2020, connecting car buyers with more than 30different finance lenders. From loan comparison, application, and final approval, CarClarity says the entire car financing process is more accessible, straightforward and transparent for customers.
CarClarity Founder and CEO, Zaheer Jappie, said:“Alongside buying a home, purchasing a vehicle is one of the biggest decisions many will make. Consumers want to feel confident that they can find the best deal in their price range. We’re on a mission to lead this in the car financing space by ensuring customers feel in control along each step of the journey to getting their next vehicle.
“Our team has gone from strength to strength this year, and I am incredibly proud to announce this raise alongside our investor partners. I look forward to leveraging their expertise and continuing to innovate and create seamless and stress-free car buying experiences.”
EVP Investment Manager, Mark Velik, said: “Zaheer and the CarClarity team have a laser-focused approach to making car financing accessible and transparent. We’ve been extremely impressed by their accomplishments to date. The astounding growth they’ve seen in the last six months alone highlights the strong call to market from Australians for a solution that helps customers navigate the car financing journey.”
The funding will ensure CarClarity keeps pace with its rapid growth by expanding its Sydney based workforce. The company will expand its roster of 15 employees to 50, including additional investments inits engineering and product development teams.
In just over two years since its founding,CarClarity has quickly established itself as a reputable leader, pioneering a new way forward in the car financing space. To date, the business has seen approval rates of over 90% and has been rated 4.9 stars on Trustpilot.
Article originally published on Which-50 on 7 September 2021.