Fintech infusions slowed as 2025 progressed, but investment volume had increased 14% to $2.6 billion by yearend.

That level was a three-year high, though 10% lower than Auto Finance News’s projection in January last year. Auto Finance News is a sister publication of FinAi News. 

In all, 39 fintechs reported capital infusions in 2025, compared with 38 in 2024. Average deal size ticked up 11% year over year to $67.4 million, though first-half deals averaged $77.5 million. Five companies scored $100-million-plus investments in the first half of the year, compared with three in the latter half.

Among second-half funding deals, Athens, Greece-based Spotawheel scored the biggest investment — $350 million in equity and debt financing. The online used-car buying platform with operations in Greece, Poland and Romania sells certified vehicles with a seven-day, money-back guarantee and five-year warranty. The new funds, which include a senior-secured credit facility from Pollen Street Capital, bolster the company’s total raise to $479 million, and will be allocated to accelerate the company’s expansion across Europe and fuel the growth of its used-car subscription fleet service.

Aside from Spotawheel, Upgrade and Octane Lending were the only two fintechs to bag $100-million investments in the latter half of the year. Auto loan originator Upgrade snared $165 million in a Series G funding round led by Neuberger, with participation from LuminArx Capital Management. 

San Francisco-based Upgrade, which sells its auto loans to a network of banks, credit unions and asset managers, was on pace last year to top $1 billion in originations. The fintech plans to use the fresh funds to develop new products and expand distribution. So far, Upgrade has received $750 million in investments. 

Powersports lender Octane Lending scored a $100 million investment in a Series F round led by repeat backer Valar Ventures. Half the raise consisted of primary financing, and the remainder went toward a secondary share sale to provide liquidity to existing shareholders. New York City-based Octane has earmarked the new funds for expansion of its captive-as-a-service program. In December 2025, Octane inked deals to power captive financing for RV retailer Camping World and powersports dealer group Adventure Lifestyle. To date, Octane Lending has raised $342 million. 

Newly established

Meanwhile, six unseasoned fintechs secured seed funding last year: Ekho, a digital auto sales platform;  FutureRent, for car subscription; Lyteflo for EV sales;  OneLot  for dealership financing; ; and Self Inspection, for AI-powered auto inspection. Investment amounts ranged from $3 million to $6.7 million.

Geographically, the United States dominated fintech deals last year. More than one-third of total funding — $920.6 million in 16 deals — was dealt to U.S.-based companies. A trio of U.K. fintechs — Bumper, Carmoola and Marshmallow — accounted for another 19% of the funding.

Bumper secured a $10.8 million Series B extension round from Autotech Ventures, Suzuki Global Ventures, Porsche Ventures, JLR’s InMotion Ventures and Shell Ventures.

Bumper, which started as a provider of interest-free repair financing for car owners, has evolved into a Software-as-a-Service platform and digital payments provider for car retailers and manufacturers. The fintech plans to use its newfound capital to launch its Bumper Pro platform and AutoBI services across the U.K. and Europe, while also supporting strategic hiring as the company looks to scale operations. 

Direct-to-consumer lender Carmoola bagged the largest funding deal this year, a $405 million debt facility provided by NatWest and Chenavari Investment Managers. The company intends to use its new funds to drive operational efficiency and expand to broader market segments. 

AI insurtech Marshmallow scored a $90 million investment from Portage Capital, with participation from BlackRock and Columbia Lake Partners. Marshmallow uses data science to develop car insurance policies for immigrants. It plans to use the funding to expand into financial services and other insurance products.

Fintechs from more than a dozen other countries also secured funding last year. India and Mexico each had three deals, while Brazil and Germany had two. Canada, China, Egypt, Israel, Japan, Philippines, Poland, Singapore, South Africa and Togo had one deal each.

2026 outlook

Where is auto fintech funding headed in 2026? So far, venture capital has been off to strong start. 

Though EV financier and Tesla Hong Kong partner WeLab Bank has been the sole recipient of investment funds, the Series D round totaled $220 million. By comparison, January 2025 was marked by $194 million in auto finance investments.

Funding will surely pick up as the year progresses, and fintechs focused on Insurtech and used cars will likely be popular among venture capitalists. My best guess for fintech funding this year: $3.1 billion. 

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