Philippine fintech startup OneLot announced it has raised $4 million in an oversubscribed pre-seed funding round led by 468 Capital, aiming to bridge the financing gap in the country’s rapidly growing used car market.
Other investors participating in the round included Kaya Founders, Crestone Venture Capital, 21yield, Founders Launchpad, and several notable angel investors.
Founded by Harm-Julian Schumacher, Tommy Campos, and Subramaniam Srinivasan, OneLot specializes in providing working capital financing exclusively to used car dealers. The company leverages an AI-enabled underwriting algorithm to process loan applications and disburse funds within hours.
“Our platform was designed with the dealer’s needs in mind, avoiding the lengthy and cumbersome procedures typical in financing,” said CTO Srinivasan. “Thanks to our AI-driven processes, we offer higher credit limits, more competitive interest rates, and faster fund disbursement than any other provider in the market.”
Since its launch earlier this year, OneLot has disbursed over $1.3 million in loans, financed more than 200 cars, and experienced a tenfold revenue growth through the second and third quarters of 2024.
The Philippines’ used car market, valued at $8 billion, is dominated by small dealerships and family-run businesses that account for over 90% of car transactions. Limited access to credit has been a significant hurdle, with banks playing only a minimal role in used car and dealership financing.
CEO Schumacher drew inspiration from his personal experience with his family’s car dealership in Germany. “I experienced firsthand how German financial institutions supported family-run dealerships like ours with a variety of loan solutions, enabling them to accelerate their growth,” he said.
Investors see significant potential in OneLot’s approach. “We saw the potential of OneLot to address significant problems in the rapidly growing used car market,” said Guilherme Steinbruch, Partner at 468 Capital. “The team combines in-depth knowledge about car dealerships and SME credit in the Philippines with decades of experience building digital products and AI.”
COO Campos highlighted the company’s strong customer retention rate of over 95%. “Once a dealer partners with OneLot, they can quickly expand their car inventory, leading to substantial increases in revenue and profitability,” he said.
The new funding will be used to expand OneLot’s services to more dealers and accelerate product and AI development.
Business News Asia
