Car finance fintech Carmoola has secured £300m worth of asset-backed securities (ABS) from NatWest and Chenavari Investment Managers.

The ABS facility will allow Carmoola to expand to other market segments, and provide better value to consumers.

Aidan Rushby, CEO of Carmoola, said: “This partnership is transformative and marks a major milestone for us.

“Not only does it triple our previous debt capacity, but it also provides the scale and efficiency needed to rapidly deploy our fast, fair and transparent car finance for the benefit of UK consumers.

“By providing a clear, simple and affordable way for people to arrange their car finance before they even set foot on a forecourt, and by removing the need for them to go through an intermediary, we have been able to empower consumers with better deals and more control over the car buying process.”

Carmoola uses a direct-to-consumer model, arranging finance with customers directly, instead of going through a dealership or broker.

Loic Fery, CEO at Chenavari Investment Managers, said: “This £300m credit origination facility emphasises our conviction in the strength, scalability and defensibility of Carmoola’s direct-to-consumer model, which is transforming the car finance sector. 

“The funding structure we have established not only supports near-term development, but also facilitates a path to future growth – a process we have pursued with many successful fintechs in Europe. 

“As an investment firm specialising in structured credit and asset-based finance, Chenavari is always seeking to partner with innovative companies: we hope that this transaction is the first of many successful transactions to come with Carmoola.”