(L-R) OneLot co-founders Tommy Campos, Harm-Julian Schumacher, and Subramaniam Srinivasan
OneLot, a Filipino lending company for used car dealers in the Philippines, has secured US$4 million in pre-seed funding led by 468 Capital.
Kaya Founders, Crestone Venture Capital, 21yield, Founders Launchpad, and unnamed angels have also participated in the funding round.
The company intends to use the capital to expand its services to more dealers and expedite product and AI development.
Founded in 2023 by Harm-Julian Schumacher, Tommy Campos, and Subramaniam Srinivasan, OneLot addresses the primary issue faced by used car dealers: lack of access to credit.
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OneLot’s loan products are tailored to car dealers’ buy-and-sell cycles. By utilizing an AI-enabled underwriting algorithm, it processes loan applications and disburses funds “in a matter of hours.”
“Our platform was created with the dealer’s requirements in mind, avoiding the lengthy and cumbersome procedures typically associated with financing. Due to our AI-driven processes, we provide higher credit limits, more competitive interest rates, and quicker fund disbursement than any other provider in the market,” stated OneLot CTO Srinivasan.
Since its launch earlier in the year, OneLot claims to have distributed over US$1.3 million in loans, financed more than 200 cars, and achieved a 10x revenue growth during the second and third quarters of 2024.
“We recognized OneLot’s potential to address significant challenges in the rapidly expanding used car market. The team combines extensive knowledge of car dealerships and SME credit in the Philippines with decades of experience in developing digital products and AI,” said Guilherme Steinbruch, Partner at 468 Capital.
The Philippines presently boasts one of the fastest-growing used car markets globally. Strong sales growth is fueled by increasing income levels, heightened demand from middle-income groups, and limited public transportation options.
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This US$8 billion industry is predominantly made up of small dealerships and family-owned businesses, which account for more than 90 percent of car transactions. On the other hand, banks play a minimal role in used car and dealership financing, resulting in finance rates three times lower than those in Europe or the US.
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