Auto Service Finance, a London, UK-based automotive payment provider, raised over £14m in debt and equity funding.
The company secured £850k through equity given to private investors, taking its total investment to £4m since its launch, as well as a further £13.3m debt facility provided by London based Naviter Capital, which is also one of the equity investors.
The company intends to use the funds to double its tech team as it prepares for expansion into European markets in the months ahead.
Led by James Jackson, co-founder and CEO, Auto Service Finance uses its platform to provide car dealerships in the UK with an interest free payment solution for customers when servicing their vehicles. The investment comes after a sustained period of growth for the startup, which has seen UK car dealerships use its loan platform as a buy now pay later (BNPL) option to sell £50 million worth of service work since its launch in 2015 – an area of the business that also grew 100% year-on-year in 2019.
Auto Service Finance is now used by more than 2,000 dealership sites in the UK, including sites belonging to brands such as Jaguar Land Rover, Peugeot Citroën, Ford and Vauxhall, and has also started working with Volkswagen Group brands across the country.