Jaguar Land Rover’s (JLR) InMotion Ventures fund, Porsche Ventures and Silicon Valley-based Autotech Ventures have contributed to a £9 million fund-raising round by Bumper.
The online platform - formerly Auto Service Finance - allows automotive aftersales customers to spread the cost of vehicle maintenance through interest-free, short-term finance agreement and is now ranked as the eighth fastest growing fintech in the 2021 FT1000 rankings of Europe’s fastest growing companies.
Bumper works with 2,500 franchised dealers, over 700 garages and has now attracted a total of £13m in funding to help propel its growth into the European car market.
Having launched its interest-free Buy Now Pay Later (BNPL) platform in Ireland earlier this year, it is currently rolling out its services in Germany and plans to be in every major European market by the end of 2022.
A new Bumper consumer app is also set to be launched in January, which will act as a one-stop-shop for all automotive requirements, including congestion charge payments, parking and tolls, as well as approving repair work.
Jack Allman, the chief commercial officer and co-founder of Bumper, was interviewed for an AM ‘5 minutes with...' Q&A feature this summer.
Commenting on Bumper’s latest funding round success, James Jackson, Bumper's chief executive and co-founder, said: “We’ve seen huge demand for expanding the services we offer and are looking forward to bringing Bumper to customers across Europe.
“The current process for handling car repairs is broken on both sides, with dealerships selling just 40% of identified repairs and drivers left out of pocket and with dangerous vehicles. Bumper offers a simple alternative to unexpected car repairs.
“It’s a very different proposition to other BNPL services, as we’re not encouraging people to buy things they don’t need, we’re enabling them to purchase necessary repairs at an affordable rate.”
InMotion Ventures principal, Alex Smout, said: “Buy Now Pay Later is the fastest growing online payment method globally. Bumper’s market-leading proposition will benefit the millions of consumers who need more flexibility when paying for crucial repairs.
“The technology seamlessly integrates with the existing systems of dealerships and OEMs, which combined with rigorous credit checking, offers merchants and dealerships a level of security previously unseen in the industry.
“We’re looking forward to working with the Bumper team and supporting the expansion of the business across Europe.”
Bumper already partners with leading OEMs including Volkswagen Group, Ford, JLR and Nissan and around 60% of the franchised UK dealer market.
Autotech Ventures managing director, Alexei Andreev, said: “The Bumper team has succeeded in building an industry-leading product in the UK and we are eager to support its expansion to Continental Europe.
“Bumper’s business ties with leading automotive OEMs, deep integration with dealerships and repair quotation tools create formidable entry barriers for other players.”