Bumper, a buy now pay later (BNPL) startup for vehicle repairs, has raised £26.1m in a Series A extension round that included the investment arm of Jaguar Land Rover.
Bumper says it is bringing the BNPL model to the automotive industry by spreading out instalments for vehicle repairs and other related services.
It lets customers at participating dealerships and garages spread the cost of vehicle services to monthly, interest-free instalments. Bumper brings in revenue by charging its partners a service fee and a £12 late fee to customers if they miss payments.
“Bumper’s rapid growth trajectory has been incredibly exciting, and the new round of investment from our amazing partners means that we can continue this growth trajectory and pursue our lofty goals to expand further across Europe,” said Bumper CEO, James Jackson.
“As the cost-of-living crisis tightens, it’s never been more important to offer affordable and convenient payment options giving driver peace of mind when getting their vehicles repaired.”
The Series A extension for Bumper came in the form of a £20m debt facility agreed with Secure Trust Bank Commercial Finance, with further equity investments coming from venture capital partners.
The round saw participation from Autotech Ventures, ITOCHU, Revo Capital, and JLR investment arm InMotion Ventures.
“Our team continues to be impressed by Bumper’s remarkable growth in the UK, and more recently in Ireland, Spain, and Germany,” said Mike Smeed, managing director at InMotion Ventures.
“We are delighted to announce our additional investment into the business, and look forward to supporting the team as they expand across Europe.”
The extension follows a $12m (£9.8m) funding round in December 2021 from Autotech Ventures, Porsche Ventures, and InMotion Ventures.
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