A FINANCING PLATFORM for used car dealers has raised $3.3 million in seed funding, OneLot said in a statement over the weekend.
OneLot said the fund-raising exercise exceeded the initial target of $1.5 million. It was co-led by Accion Ventures and 468 Capital, with new participation from Everywhere Ventures and Seedstars.
“The fresh capital will accelerate OneLot’s mission to empower used-car entrepreneurs with faster access to credit, artificial intelligence-driven underwriting, and technology solutions that help them grow their businesses,” it said.
The used-car industry, currently valued at $15 billion, is currently dominated by family-owned dealerships.
“Overall, we expect a continued growth of the used car market of approximately 10% per year, driven by demand in convenient yet affordable transportation,” the company said.
“This will be mostly captured by the family used car dealerships,” it added.
However, 90% of used car dealers still lack reliable bank financing, with only 12% of Filipinos having access to formal loans.
“OneLot’s mission is to remove capital barriers, provide access to affordable capital, and enable dealers to buy and sell more cars,” the company said.
So far, the company said it has issued over $7 million in loans and supports more than 150 dealers on its platforms.
“With this new funding round, we’re doubling down on our mission to become the leading financing platform for used car dealers,” according to Harm-Julian Schumacher, chief executive officer and co-founder of OneLot.
Moving forward, OneLot aims to accelerate growth across the used car dealership market in the Philippines.
“The company will continue expanding its dealer network, extending more credit to existing partners, and broadening its product suite with new software tools and financing solutions that support dealers from sourcing to sales,” it said.
“Together, these initiatives will further strengthen OneLot’s position as the trusted partner for used car dealers nationwide,” it added.
According to the company, it is planing to grow its network to up to 400 dealerships in the next few years. — Justine Irish D. Table