Car buying website Hellocar ignited by £1m funding
UK start-up founded by car industry entrepreneur Nic Carnell will be taking on competition from the likes of Carspring...
A car buying start-up born out of incubator programme Founders Factory has secured £1m funding to support its launch this month, ahead of a national roll-out.
Manchester-based Hellocar received the investment from JamJar Investments – the venture capital fund ran by the Innocent Drinks founders – and Zoopla founder and CEO Alex Chesterman.
Founded by Nic Carnell, who previously founded The Car Buying Service, Hellocar removes the dealer from the car buying process and says it will “bring transparency and convenience to the car buying experience”.
All of the vehicles featured on the platform have passed a 168-point inspection by AA and are home-delivered to the buyer. The start-up also gives the buyer seven days to change their mind and get a full refund.
Hellocar is not the first business to attempt to tackle the car-buying process and it will be taking on competition from fast-growth car marketplaces like Carspring, founded by Young Guns Max Vollenbroich and Peter Baumgart, with plans to use the £1m funding to grow its existing team.
Hellocar's Carnell commented:
“With trust in the used car industry even lower than estate agents and banks, it’s no surprise that four-out-of-five consumers still find the process of buying a car stressful. […] We’re taking the process of buying a car from three months to three minutes.”
JarJam Investments partner, and co-founder of Innocent Drinks, Adam Balon added: “We see a huge opportunity for consumers to buy used cars at a better price and more conveniently than with traditional dealers. Hellocar is in a prime position to achieve this. The partnership with the AA ensures peace of mind for consumers that a private purchase can’t bring.”