Online car finance specialist Car Loan 4U has announced an £8m investment from venture capital firm Scottish Equity Partners. The investment will enable Car Loan 4U to accelerate its growth.
Launched in 2006, the firm provides an online service for consumers looking for car finance, and has overseen its most successful period of growth over the last 12 months.
Turnover has grown by more than 75% to £11m, and headcount has increased to 150 employees. The company hopes to more than quadruple its annual revenues over the next four years. The new funding will be used to help build the Car Loan 4U brand and implement and expand the capabilities of the firm’s technology.
CEO James Wilkinson said: “The investment from SEP represents a landmark for Car Loan 4U. It will be invaluable in helping us continue our ambition of revolutionising the market by transforming the way consumers take out car finance online.
“It comes at an exciting time in the company’s history, and the extensive digital technology experience of SEP makes them the perfect partner for us to develop our strong growth. We have expansion plans across the board and, in a short space of time, we have evolved from a small business exploiting a gap in the market to emerge as a clear leader in our sector.”
Andrew Davison, a partner at SEP, will join the company’s board. He said: “Car Loan 4U has been self-funded to date, and we have been impressed by the fact that it has consistently grown revenues.
“We believe there is a very large market opportunity, with seven million used cars being sold in the UK last year. This involved £8bn of dealer-arranged finance across an estimated 845,000 deals. We are just at the beginning in terms of the use of the internet in financial services. Our investment will enable the company to increase its brand awareness, allowing it to capitalise on the trend towards greater online loan provision.”