Venture capital firm Scottish Equity Partners (SEP) has backed online car finance provider Car Loan 4U with an £8m investment.
Over the past 12 months, Car Loan 4U has seen its revenues surge more than 75 per cent to £11m and plans to more than quadruple its turnover over the next four years.
SEP said the investment will help the company to increase its brand awareness, allowing it to capitalise on the trend towards greater online loan provision
SEP partner Andrew Davison said, “Car Loan 4U has been self-funded to date and we have been impressed by the fact that it has consistently grown revenues to become the UK’s leading provider of online used car finance.
“We believe there is a very large market opportunity, with seven million used cars being sold in the UK last year. This involved £8 billion 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.”
Last October Sequoia capital bought a sttake in SEP-backed flight search business Skyscanner in a deal that valued it at $800m.
SEP invested £2.5m in the company’s first outside funding round in 2008 and is currently its largest shareholder.
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