Fintech CarClarity raises $1 million seed round

CarClarity founders and investors
Contents
Sydney-based car loan fintech Carclarity has raised a $1 million seed round led by Equity Venture Partners (EVP), just 12 months after launching.

The funds will be use to build the startups product and development as it looks to expand from car financing to embedding itself in the car buying experience.

Others in the funding round included senior executives and employees of Prospa, Harmoney and Uno Home Loans. Prospa exec Raj Bhat, a former Partner at KPMG will join CarClarity’s board, along with Mark Velik of EVP.

Founded in 2019 and launched in March 2020 by a trio who previously worked at fintechs such as Plenti, Prospa and FlexiGroup, Carclarity’s to build a better way to find a car and secure finance.

Co-founder Zaheer Jappie said the current process is broken and tipped against consumers.

“If you’ve ever browsed thousands of offers on Car Sales, negotiated a price whilst having no idea what is fair, then tried to get finance all whilst wondering what the fine print meant, you understand why CarClarity exists,” he said.

The platform connects borrowers with more than 30 different car finance lenders, matching the buyer with a lenders based on price and loan terms they need, followed by an online application process to secure their financing.

In its first 12 months CarClarity has secured more than $8 million, with more than 8000 customers using the technology to compare matched lending options.

Jappie says Covid-19 had a dramatic impact on the used car market, with prices up 40% since last April and reduced new car stock coming into the country.

“Newer used cars are scarce and as a result we have been seeing an increase in customers looking for finance before they look for a car empowering them to secure a car quickly when they do go to market,” he said.

On top of that regulatory authorities are looking at the removal of ‘point of sale exemption’, which allows car dealers to secure finance for buyers without needing an Australian Credit Licence

That change potentially adds to the appeal of CarClarity for dealers.

“We are a compliant solution and we understand the importance of customer experience, channel partners and building a strong trusted brand,” he said.

EVP’s Mark Velik said CarClarity is introducing a simple, trusted and transparent experience for buyers.

“Today 39% of consumers are making financing decisions with limited options under time pressure in unlicenced  dealerships,” he said.

“The remaining 61% are navigating an opaque market online. Australians are crying out for a straightforward way to find the best car financing options at the best price. CarClarity is well placed to solve this problem.”

Startup Daily

Ausbiz's Startup Daily Show features the hottest startups and provides news, insights and stories from the Australian and New Zealand tech ecosystem.

3
min read

CarClarity revs up with $3m funding round

The start-up is capitalising on Covid-driven demand for new vehicles, amid a widespread shortage.
3
min read

CarClarity tops up coffers with $3 million capital raising

Car loan platform CarClarity has raised $3 million in Series A funding from existing investors, with the new funding to be used by the Sydney based start-up to “pioneer” a new online car buying service that it claims reinvents traditional in-person car buying.
4
min read

CarClarity Closes Series A – Expansion Continues

Australian car loan platform, CarClarity has closed a $3 million Series A funding round led by Equity Venture Partners (EVP).
4
min read

CarClarity secures A$3 Million Series A to continue rapid growth of its car financing and online purchasing platform

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.
Helpful car loan expert on computer

Get free expert advice on your next car loan

Our experts will help you figure out the cheapest new car loans available for your financial situation.