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Auto repair financing startup Bumper raises $48M

Illustration of Benjamin Franklin in a car's rear view mirror, with a dollar-symbol air freshener.

Illustration: Shoshana Gordon/Axios

Bumper, a startup providing interest-free financing options for auto repairs, raised $48 million in new funding led by AutoTech Ventures.

Why it matters: Despite a crowded BNPL market, investors are still bullish on pay-over-time startups serving vertical markets.

Details: The funding round includes $18 million in equity financing and $30 million in debt.

  • Shell Ventures, JLR's InMotion Ventures, Porsche Ventures and Revo Capital also participated in the round.
  • Sheffield, U.K.-based Bumper has raised $64 million since being founded.

How it works: Bumper works with car dealers to offer digital and physical payment options, including open banking payments, card payments and in-dealership card terminals that integrate into dealers' infrastructure.

  • But its big value prop is enabling consumers to split their repair bills from one to six months interest-free.

What's happening: Bumper says it is available through 5,000 dealers and facilitated payments for over 250,000 repairs over the last year.

  • The company has partnerships with auto brands like Volvo, Ford, Nissan, VW Group, JLR and Porsche.
  • Bumper operates in the U.K., Spain, Germany, the Netherlands, and Ireland, and it plans to expand to other countries with the new funding.
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