£350m securitisation for Oxford start-up Oodle Car Finance in order to drive used-car market disruption

Just three years since launching, Oodle Car Finance, the visionary company changing the way people buy used cars, has closed its first asset-backed securitisation (ABS). The £350m transaction enables the hyper-growth business to invest further in its proprietary disruptive technology platform, as it continues to make car finance more efficient and seamless – for customers and its trusted network of 200 dealers.

The SPV (special purpose vehicle) Dowson 2019-1 is the debut bond offering from Oodle Finance, who are backed by leading global investment manager KKR and banking partners Citigroup. Rated AAA (Excellent) by Moody’s Investors Service, it raises a further £350mn for the company, in addition to the £600m of committed funding already agreed. The oversubscribed transaction saw demand from a total of 14 leading European and international bond investors and demonstrates continued confidence in both Oodle’s ambitious business model and determination to be the leading finance company in the £55bn UK used car market.

On a mission to revolutionise the used car customer experience, Oodle has developed a market-leading dealer proposition with a more inclusive customer offering, fully automated instant decisions, simple and intuitive systems to deliver a seamless process, making it simpler and faster for consumers to find and finance their dream car. Oodle is adding to this successful dealer launch with their piloted “Direct to Consumer” offering. An intuitive and automated in-app experience, enabled by its acquisition of marketplace Carsnip in 2018, provides access to over 200,000 cars. Oodle customers can complete car financing online in minutes.

Founder and CEO Jonny Clayton comments, “This securitisation is a game-changing milestone for Oodle, allowing us to drive our ambitious plans further forward and with the customer at the heart. A diversified funding base unlocks huge potential for our growth plans. It means more tech innovation, increased market collaboration and more delighted customers. Most importantly, this clearly demonstrates that we’re here to stay.”

Since launching in 2016, Oodle has received more than £5.6 billion in applications, and funded £660 million of car finance to more than 50,000 UK customers. In the last 12 months alone, applications have increased by 330%. Founded by finance veteran Jonny Clayton, in just three years, the business has grown to a team of 280, based in its Oxford headquarters and across offices in London, Cardiff and Manchester.

Jonny adds, “Our mission is 100% focused on empowering the consumer and revolutionising the car buying experience. At the same time, it’s vital that car dealers stay at the absolute heart of the used car buying process. So, this is about how we strengthen our partnerships, bring our dealers closer to customers through digital platforms and services, and providing the next generation best-in-class consumer experience. Together, we can drive the fragmented car industry forward.”