- Bumper received $48 million in funding for its BNPL tool for vehicle repairs.
- The funding round was led by Autotech Ventures and comprised of $18 million in equity and $30 million in debt.
- Bumper’s partner dealers have facilitated BNPL payments for more than 250,000 repairs in the past 12 months. The company hopes to double that this year.
Bumper, a payment platform for car dealerships, landed $48 million (£40 million) in Series B funding today. The funds consist of $18 million (£15 million) in equity and $30 million (£25 million) in debt.
Autotech Ventures led the round, which saw contributions from Shell Ventures, JLR’s InMotion Ventures, Porsche Ventures, and Revo Capital. The investment, which boosts the U.K.-based company’s total funding to $64 million, will help Bumper expand the reach of its buy now, pay later (BNPL) platform for car repair bills.
Bumper plans to use today’s funds to expand across Europe, specifically in the U.K., Spain, Germany, the Netherlands, and Ireland.
Bumper was founded in 2013, well before the BNPL boom of 2020. The company is currently partnered with 5,000 car dealerships that offer car repair services. In the past 12 months, these dealerships have provided BNPL payments for more than 250,000 repairs for Volvo, Ford, Nissan, VW Group, JLR, Porsche, and more.
Customers begin engaging with Bumper before they ever enter the dealer. The car owner applies for a credit limit of up to $6,300 (£5,000) at home and receives an instant decision. If they are pre-approved, they receive a unique Bumper Code that they show to their service provider, who then sends the customer a link to set up their payment plan. The customer can select to spread their payment over the course of one month to six months, interest free.
Bumper offers a suite of payment options– both digital and physical. Customers can opt to pay using open banking payments, card payments, or at card terminals located in the dealership. All payment methods can be fully integrated into the dealer’s existing infrastructure.
Looking ahead, Bumper wants to double the number of BNPL transactions it has facilitated in the past year. “We want to be the dominant payment platform for car dealers across Europe,” explained company Co-founder and CEO James Jackson. “We’ll do it by providing a no-brainer solution, one that gives their customers the ultimate flexibility in making the necessary payments to keep their cars on the road.”
The timing for this growth objective is favorable. The cost of living crisis is driving up the use of BNPL across sectors. High-ticket auto repairs, which often catch consumers off-guard, are an ideal use case for BNPL. “There has never been a more important time for a business like Bumper, with consumers across Europe feeling the pinch amidst high inflation, rising bills and escalating rent or mortgage costs,” said Jackson. “The need for a flexible way to pay for car repairs is vitally important for drivers, and dealers want to ensure they can provide customers every reason to book them in there and then.”
While the number of merchants offering BNPL options for high-ticket goods has expanded around the globe, there are not many providing the new payment option for services, such as auto repair. That said there are a handful of BNPL companies that specialize in travel experiences and some, including Sunbit, that offer BNPL for medical services, vet bills, as well as auto repair bills.
The post Bumper Pulls in $48 Million to Drive Growth in BNPL for Car Repair appeared first on Finovate.
Source: https://finovate.com/bumper-pulls-in-48-million-to-drive-growth-in-bnpl-for-car-repair/
