The UK startup offering interest-free flexible payments for car repairs sets sights on Europe after ‘bumper’ year

• Funding is led by Autotech Ventures, with participation from Jaguar Land Rover’s InMotion Ventures and angel investors
• Bumper’s Buy Now Pay Later (BNPL) platform offers interest-free flexible payments and a fully automated platform for financing and managing car repairs and maintenance
• Already profitable, Bumper’s GMV is set to triple by the end of 2021 and it was recently named 8th fastest growing European fintech in the FT1000
• Ambitions to be in every major European market by end of 2022

UK-based auto fintech startup Bumper has raised $12M in Series A funding to roll out its car repair financing platform across Europe. The round is led by Silicon Valley based Autotech Ventures, with participation from Jaguar Land Rover’s fund InMotion Ventures, and a group of prominent angel investors. The latest round brings total funds raised by the company to $17.5m.

Bumper enables customers to spread the cost of car repairs by offering interest-free, flexible payments to help drivers better afford necessary repairs and maintenance. Customers can split bills and authorise repairs in seconds via a fully digital automated process, making the process more efficient and removing the need for uncomfortable price negotiations with dealerships. With new car purchases currently at their lowest since 1998, there is a burgeoning used car market with a growing need for financing repairs on older vehicles. This is reflected in the European aftersales market, which is projected to hit €300 billion by 2030.  

Alongside the consumer offering, Bumper partners with the world’s leading OEMs including Volkswagen Group, Ford, Jaguar Land Rover and Nissan, and approximately 60% of the franchised UK dealer market currently use Bumper’s payment platform. For automotive partners, using Bumper’s payment solution increases repair conversion rates and reduces discounting and price negotiation, a costly practice which leads to losses for the retailer and poor customer satisfaction. Bumper charges a small transaction fee to the dealerships in exchange for providing the full cost of the repair up front. 

Bumper is the only BNPL provider to aggregate thousands of vehicle and consumer finance data, with thorough affordability checks, ensuring it is always lending responsibly. To ensure both dealerships and consumers are protected from loan defaults, Bumper has developed a Machine Learning-enabled  automotive scorecard as part of a rigorous credit checking process; this includes accessing the dealerships’ APIs to source customer information quickly and without laborious application processes.  

Already a dominant player in the UK and Ireland, Bumper is currently rolling out its product in Germany, plans to launch in Spain and the Netherlands in the next three months, and has ambitions to be in every major European market by the end of 2022. The new funding will go towards hiring in these new markets, scaling the tech team, and marketing efforts as they build out the B2C proposition.

Plans are also in the pipeline for the widespread launch of a consumer app, which will act as a one stop shop for all automotive requirements, such as payments for congestion charges, parking and tolls, and approving repair work. The app is due to launch in the UK in January 2022.

Bumper was named eighth fastest-growing European fintech by the Financial Times this year, and has already been profitable for the last 18 months, with GMV (Gross Merchandise Value) set to triple by the end of this year. Unlike other Buy Now Pay Later models, Bumper’s transactions are typically large, one-off sums. This means that customers are not being encouraged to regularly borrow more than they can afford, and default rates are low.

James Jackson, CEO and cofounder, Bumper said: “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 Buy Now Pay Later 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. We’ve seen huge demand for expanding the services we offer, and are looking forward to bringing Bumper to customers across Europe.”

Alex Smout, Principal, InMotion Ventures 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.”

Alexei Andreev, Managing Director, Autotech Ventures said: “We are very excited about the Buy Now Pay Later business model, which has empowered consumers all over the world. We believe that automotive repairs and the aftermarket are the next big BNPL frontiers, and that modern software and clever financial tools can unlock substantial value for industry participants. 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. Autotech Ventures is fully committed to providing business development resources and bringing new partnerships to accelerate Bumper’s growth”.