Oodle Finance, a used car finance business, has secured a £60m equity investment with the aim of becoming a major player in the motor finance space.
The company first launched in 2016, and has spent the past year working with a small number of dealers, ensuring its in-house technology and systems are ready for rapid growth.
Based in Oxford, Oodle Finance aims to differentiate itself from competitors by offering dealers and customers finance across different credit profiles, as opposed to focusing on one section of the credit spectrum.
It uses a proprietary technology it says will help differentiate it from the competition, including an automated application process driven by self-originated risk management algorithms.
It also said it plans to launch a loyalty rewards scheme for its borrowers which could, for example, be used at the end of the loan to support a deposit on a subsequent car purchase along with a new loan.
The team is led by chief executive officer Jonathan Clayton, who worked at Credit Suisse before founding and becoming chief executive officer of specialist investment and lending company Venn Partners.
Phil Williams is the managing director, who has a history in consumer finance and direct car finance sales.
James Southon is chief operating officer. Before joining Oodle, he was head of transaction management at Investec Bank.
Clayton said: “Oodle will deliver the benefits of technology into the used car market to build a company associated with exceptional service levels, market leading products and affordable financing solutions for all types of borrowers.
“We want to make life easier, more cost effective, efficient and transparent for car dealers and borrowers. We will improve the car buying and selling process, and reward our borrowers to build long term and strong customer relationships.”
The investment has come from global investment firm, KKR.