Car loan startup Carputty raised $7.2 million in a seed round led by a $3 million backing by Kickstart Fund, according to a press release on Friday (August 6). Additional investors included Kinetic Ventures, University Growth Fund, Aries Capital Partners and entrepreneur John Dancu.
Carputty is working to disrupt the car financing business and offer complete transparency, increased flexibility and quick answers to the loan information car buyers seek.
“Our mission is a big one: to lift the veil from car financing and provide real-time flexible lines of auto credit in just minutes,” said Carputty Co-Founder and CEO Patrick Bayliss.
Read More: Carputty Raises $7.2 Million to Simplify Car Financing
Bayliss also has experience owning multiple car dealerships. He added that the company looks at this funding opportunity as something that will “improve the entire cycle of auto finance” and also possibly serve as the final car loan destination anyone “should ever need.”
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Outstanding car loans hit almost $1.4 trillion at the end of last year, a statistic Carputty wants to work towards eradicating. The Atlanta, Georgia-based firm is planning to use the fresh infusion of capital to further enhance its product offerings.
“Carputty is positioned to rewrite industry rules,” said Carputty Co-Founder and Chief Product Officer Joshua Tatum. “This available capital enables us to quickly scale while delivering easy-to-use lines of credit and proprietary valuation tools, that allow our clients to treat their cars as the true assets that they are.”
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Tatum helped launch the startup after already having worked decades in consumer lending and technology. He believes Carputty can offer a streamlined solution that is based on actionable data, which empowers people to make vehicle investments that are in line with the future value of the cars they choose.
“Carputty is putting the consumer and their household first when it comes to financing new and used auto purchases—all combined with ease of use, quick decisions, low rates and the ability to place multiple cars in one line of credit,” said investor John Dancu.
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“We believe in the vision of Patrick and Joshua to take financing to the next level by transferring control back to the consumer,” said Kickstart Fund Partner Dalton Wright.
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