An Atlanta startup focused on auto financing raised its largest investment yet as it looks to enhance its product and expand partnerships.
Carputty raised a $12.3 million Series A round co-led by Fontinalis Partners and Atlanta-based TTV Capital, according to a Dec. 6 news release. Other investors included Porsche Ventures, Grand Ventures and Kickstart Fund, which led the company’s $7.2 million seed round last year.
The company’s total funding is just under $22 million, according to the release.
The company plans to expand its customer base to all 50 states following the raise, Joshua Tatum, co-founder and chief product officer of Carputty, said in an email to Atlanta Inno. On the product side, Carputty will increase automation and efficiency in the platform and expand its features.
Carputty has 48 employees, 22 of whom are based in Atlanta. It aims to grow to around 80 employees in the next six months, Tatum said.
Georgia is known for its automotive manufacturing and has a host of startups focused on auto innovation.
Insurance technology startup Mile Auto Inc., which raised $4 million in October, uses computer vision and machine learning to give insurance to low-mileage drivers. Carpool Logistics, a startup whose platform cuts costs and emissions of shipping vehicles, raised $2 million in July.
The state is also home to Cox Automotive, which is under the Cox Enterprises umbrella and provides a suite of companies for car dealers, and dealership giant Asbury Automotive (NYSE: ABG).
Carputty, founded in early 2020, is a direct lender of auto financing. It analyzes a person’s past, present and future information to approve a line of credit that can be used to purchase or refinance a vehicle.
In the past year, Carputty had an 850% increase in members reaching more than 14,000 members to date, according to the release. It also saw a 1,200% growth in individual loans provided.
The company’s Flexline credit line can be used so a person can have their car payments in one place opposed to handling multiple loans. It also shows a person the best time to sell based on how much a car is and projected to be worth.
