Australian leading car financing platform, CarClarity, has closed a 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 and WeMoney, Ben Taylor.
Following its A$1 million seed raise in March 2021, CarClarity saw a staggering 600% growth in revenue, with over 30,000 customers to date using the platform to compare matched lending options.
The new funding will enable CarClarity to pioneer a new 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 further disrupt Australia’s AU$37 billion motor vehicle financing market.
At a time when vehicle demand is surging due to stock shortages, CarClarity’s upcoming car buying offering puts everything buyers need into an easy and hassle-free online shopping experience. With access to 280 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 30 different finance lenders. From loan comparison, application, to approval, CarClarity makes the full car financing process easier, clearer and more 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 in its 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 Australian FinTech on 7 September 2021.