Jaguar Land Rover backs auto repair company BNPL Bumper for $ 12 million raise
Bumper, a UK-based start-up that provides buy-now services, Pay Later (BNPL) for auto repair funding, raised $ 12million (£ 9.04million) during of its last funding cycle.
This Series A funding was led by Silicon Valley-based Autotech Ventures with participation from Porsche Ventures and Jaguar Land Rover’s InMotion Ventures fund.
The funding round, which also saw liquidity provided by angel investors, brings the total funding raised by Bumper to £ 13.19million.
Bumper plans to use the funds to fuel its expansion into Germany, Spain and the Netherlands over the next three months. It plans to establish itself in other European markets by the end of 2022.
The company will strengthen its workforce and increase its marketing efforts for its business to consumer offerings. Bumper is developing a consumer application designed to help consumers pay congestion charges, parking and tolls, and approve repair work. The app is expected to launch in the UK by January 2022.
Founded in 2013 as Auto Service Finance, Bumper provides a digital payment platform for vehicle repairs and services through a BNPL model. The service allows consumers to spread costs, divide ailments, and the startup says its loans are based on aggregating “thousands” of consumer credit data.
It also partners with car manufacturers, in particular OEMs such as Volkswagen Group, Ford, Jaguar Land Rover and Nissan, among others.
He claims that 60% of the UK franchise market is currently using his payment platform. Bumper says its business partners can increase repair conversion rates while reducing discounts and price negotiations. He said he was profitable in the past 18 months.
“Bumper offers a simple alternative to unexpected car repairs,” said James Jackson, CEO and co-founder of Bumper. “It’s a very different proposition from other BNPL services, because we don’t encourage people to buy things they don’t need, we allow them to buy needed repairs at an affordable price. We have seen a strong demand to expand the services we offer and look forward to bringing Bumper to our customers across Europe.
Bumper is not the only company to have adopted the BNPL model. British digital bank Monzo, which recently bred $ 500 million in its latest round of funding, is currently exploring BNPL’s services to take on rivals such as Klarna and others.
However, the UK government is looking for ways to regulate the currently unregulated BNPL model and has launched a consultation.