Online platform Tootle, which aims to enable customers to sell their used car for the best price possible directly to dealers, has today nabbed £2.5m in venture capital funding.
The series A funding round, led by business incubator Hambro Perks, brings the total raised by the one-year-old startup to £4.3m.
Tootle operates by allowing car sellers to post a free advert on its site, which then appears to Tootle's national network of vetted car dealers. The dealers can bid for the vehicle, without auction or indemnity fees, and Tootle says sellers on its site earn five to 10 per cent more than they would from a traditional car-buying service.
“The additional funding allows Tootle to enter another exciting phase of growth through technical optimisation and partnership development,” said the business's chief executive Gordon Tulloch.
He added that the business was planning to bring out new car insurance products following the funding, and to expand overseas.
The new money will also be used to expand the dealer network and develop new technology, as well as providing transport services so that the buyers and sellers don't have to deliver the car themselves.
Tootle has already sold £21m worth of cars on its platform, by partnering with companies such as the RAC, Confused.com, Autoexpress owners Dennis Publishing and Whatcar and Pistonheads owner Haymarket Media.