Online car dealership secures six figure funding to drive business growth

A Milton Keynes based online car dealership has secured £800,000 in investment to support expansion and create 40 new jobs. Finance Giant Ltd, trading as CarOOn, secured the loan from the Midlands Engine Investment Fund (MEIF) provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme.

Increases in second hand car purchases during the pandemic allowed CarOOn to benefit by developing an intuitive platform that allows customers to buy cars online easily. With all stock subjected to extensive checks and preparation at CarOOn’s state-of-the-art service centre prior to being offered for sale, the efficient digital system means that cars can be bought and delivered within a day.

CarOOn CEO, Syed Khusro Kamal, said: “This loan allows us to recruit and train new staff and once they are in position we will be able to grow our site to its capacity of 1,000 cars. In addition, we will continue to invest in the development of our technology, which is vital to us staying ahead as an online business.”

The move towards increased online purchasing brought about by the pandemic has continued in the car industry with a study by CarGurus showing 64 per cent of people would now buy cars online as opposed to 36 per cent pre-covid.

CarOOn remains connected to its buyers with a customer loyalty rewards app accompanying its end-to-end digital journey, to complete the entire process of online car purchases in one place, making repeat custom more likely and helping the business to maximise on this shift in buying trends.

Ann Marie McFadyen, investment manager at The FSE Group which manages the MEIF Debt Finance Fund on behalf of British Business Bank, added: “Syed has built a robust management team and has strong plans for future growth, including a second site and in-house logistics.”

Lewis Stringer senior manager, UKN at the British Business Bank, said: “The MEIF has always supported innovative businesses in the Midlands to invest in technology to enable growth in both new and existing industry sectors.”

Vicky Hlomuka, growth hub manager at SEMLEP, said: ‘It’s always good to see local businesses innovating, growing and succeeding. CarOOn has done a fantastic job of adapting to changing conditions and it’s great to hear that the MEIF is supporting them in creating more jobs and more opportunities for the region.“

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

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