Grapevine-based fintech startup Car Captial announced on Tuesday that it secured a $150 million secured credit investment and another $6.12 million equity investment from Fortress Investment Group.
Car Capital was founded in 2020 and is a subsidiary of Car Capital Technologies. With its Dealer Electronic Auto Loan System (DEALS), car dealers that partner with the company are able to access capital in order to instantly approve 100 percent of customer loans, despite their credit history.
According to a press release from Car Captial, the $150 million investment is in the form of a three-year sacred credit facility. The credit facility investment allows Car Capital to borrow capital for a fixed amount of time instead of having to seek new investors and reapply year after year.
“Car Capital has built an exceptional business powered by proven, innovative technology and a business model that delivers substantial benefits to consumers and dealers alike,” Dominick Ruggiero, managing director at Fortress Investment Group, said in a statement. “We are excited to provide a capital solution that positions Car Capital for significant continued growth in the years ahead.”
With both investments, Car Captial will use the new funds to continue expanding its platform and also to partner with more auto dealerships to implement its platform.
Currently, Car Captial operates in 11 states, including Texas, Florida, Georgia, Indiana, Ohio, Oklahoma, Tennessee and Illinois. The company previously stated that it is looking to get licensure to operate in more states.
Last year, Car Captial had two successful funding rounds. In March, the company launched operations and announced it secures $8.8 million in a Series A round led by FM Capital with participation from Automotive Ventures and Medalist Partners. One month later, the company announced it secured a $20 million credit line deal with Medalist Partners.