Sydney-based car financing tech start-up CarClarity is capitalising on Covid-driven demand for new and used cars, raising $3m in a Series A funding round after increasing its revenue by 600 per cent in the past six months.
CarClarity CEO and founder Zaheer Jappie said that, amid a widespread car shortage, he wants to pioneer a new online car buying service that reinvents traditional in-person car buying.
The company’s platform launched in March last year, connecting car buyers with more than 30 finance lenders handling loan comparisons, applications and approvals.
“When we launched there was no place for you to go and confidently compare lenders,” Mr Jappie said.
“We match customer data and criteria to lenders digitally and instantly, and then we guide customers through a very simple online application form and help them get the best outcome.
“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.
“The way people buy cars hasn’t really changed at all in the last 20 years, but consumer habits have changed. We have experts that source the car from the dealer market, and take care of the whole process for finance and insurance, and consumers often save thousands of dollars, too."
CarClarity would increase its roster of 15 employees to 50, Mr Jappie said, including additional investments in its engineering and product development teams. CarClarity’s next car buying offering will give customers access to nearly 300 Australian car dealerships. It will launch that service later this year.
The $3m Series A funding round was led by Equity Venture Partners and included existing investors Raj Bhat, the former Prospa Capital Management adviser, and Oxygen Home Loans managing director Ben Taylor, who was also an early backer of Harmoney and WeMoney.
The company did not disclose its current valuation.
“Zaheer and the CarClarity team have a laser-focused approach to making car financing accessible and transparent,” EVP investment manager Mark Velik said.
“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.”
Article written by David Swan and originally published in The Australian on 7 September 2021.