Carputty, a FinTech company modernising auto financing and ownership, has raised $12.3m in a Series A funding round.
This raise, co-led by Fontinalis Partners and TTV Capital, brings Carputty’s total funding amount to $21.9m.
Additional investors include Porsche Ventures and Grand Ventures, as well as Kickstart Fund, who led the Companyâ€™s seed round.
Founded in 2020, Carputty reengineers auto financing by leveraging data based on the consumer and not directly tied to a transaction.
The companyâ€™s flexible lending product, Flexlineâ„¢, gives members a continuous line of credit that can be used to finance all their vehicles, including new and used automobiles, lease buyouts and refinancing of existing loans.
Carputty said its data-first approach powers financing decisions that are agnostic, transparent and dynamic, with each memberâ€™s Flexline evolving alongside their financial standing.
According to the US Census Bureau, American families own an average of 2.5 vehicles, often representing the second most valuable asset in any given household. Despite this, Carputty said the majority of 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 take the buyersâ€™ financial standing into account, the company added.
In fact, 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.
Patrick Bayliss, co-founder and CEO, said, â€œWe 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. We are proud to be supported by investment teams with deep experience in automotive and FinTech, and thrilled that they embrace our vision.â€
Earlier this year, Moove, which stylises itself as the worldâ€™s first mobility FinTech company, collected $20m in funding from Absa Corporate and Investment Banking.
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