Carputty announces $12.3m Series A funding to modernise auto financing

By Edlyn Cardoza

Carputty, a FinTech company modernising both auto financing and ownership, announced the closing of a $12.3 million Series A funding round. This raise, co-led by Fontinalis Partners and TTV Capital, brings Carputty’s total funding to $21.96 million. Additional investors include Porsche Ventures, Grand Ventures, and Kickstart Fund, which led the Company’s seed round.

“While it’s critical to deliver a great experience for our members, we built our software with an equally robust feature-set to support and scale with Carputty’s ever-expanding network of partners,” said Joshua Tatum, Co-Founder and Chief Product Officer at Carputty. “The platform can be embedded seamlessly with a broad variety of businesses who could benefit from our end-to-end capabilities – from point-of-sale all the way through to servicing.”

According to the U.S. Census Bureau, American families own an average of 2.5 vehicles, often representing the second most valuable asset in any given household. Despite this, many consumers are ill-informed and ill-prepared when making financial decisions regarding their automobiles.

More than 60% of auto loans originate at the dealership, where rates rarely consider the buyers’ financial standing. Recent FTC reports have revealed that many of the same issues that plagued the home mortgage industry in the run-up to the 2008 crisis are present in the auto financing space today.

“We created Carputty to bring transparency to auto financing and empower car owners to make more informed decisions about their vehicles, just like they would with their other investments,” said Patrick Bayliss, Co-Founder and CEO of Carputty. “We are proud to be supported by investment teams with deep experience in automotive and fintech, and thrilled that they embrace our vision.”

With the Carputty Flexline, consumers and businesses get flexible lines of credit that can be used to finance any vehicle. Flexline accounts have a maximum of $250,000 and can be used to purchase new or used vehicles directly and can also be used to buy out leases or refinance existing auto loans. Once established, members have financing for as long as they want or need it, powered by the Company’s end-to-end data-driven platform.

“The auto finance market is overdue for broad innovation. Patrick, Joshua and the Carputty team impressed us with their vision to bring transparency and accessibility to the car buying process,” said Sean Banks, Partner at TTV Capital. “Carputty’s platform is unique in its ability to simplify car ownership through digitally managed payments and services. We see a massive opportunity for Carputty to re-engineer the auto finance market by providing a flexible line of credit that is based on the consumer’s financial standing, not the value of the transaction.”

Over the past year, the Company has seen an 850% increase in members resulting in more than 14,000 members to date, a 3100% increase in Flexline dollars approved, and a 1200% growth in individual loans. The new capital will be used to drive further growth through accelerated platform development, expanded business collaborations with existing and future partners, and expedited commercialisation and adoption throughout the U.S.