Manchester-based car finance FinTech Zuto has landed a majority investment from Bridgepoint to accelerate the next phase of its growth.
Zuto’s revenues are up 30 per cent year-on-year to £75m and the deal signals an exit for long-term investor Scottish Equity Partners (SEP).
Jim Wilkinson, CEO of Zuto, said: “This is a pivotal milestone in Zuto’s journey. We’re proud to be a high-growth, profitable fintech operating at scale – leading the way in our sector by combining technology with a progressive, people-first approach.
“The fact that Bridgepoint shares our vision and has invested with such confidence is hugely exciting. It gives us the opportunity to strengthen our position, scale our platform, support more customers and give them even greater control.”
“We are hugely grateful to SEP for the support and guidance they have given us.
“Their partnership, and belief in our mission, has played a huge part in shaping the business into what it is today, supporting the development of the progressive culture that makes Zuto so unique”.
Founded in 2006 by Jim Wilkinson and Ryan Dignan and certified as a B Corp, Zuto has helped over 450,000 people in the UK find the right car finance for their needs.
The company achieved revenues of £75m and EBITDA of £12.5m in the last financial year to June 25.
This momentum has continued into the new financial year, with Q1 revenues growing over 30 per cent year-on-year.
Zuto combines technology and a customer-first mindset to bring simplicity and integrity to the car finance experience, with rising consumer preference for researching finance options online further fuelling its growth.
The partnership will accelerate the development of Zuto’s technology platform and broaden the company’s product range, drawing on Bridgepoint’s deep sector expertise in scaling high-integrity fintechs, including investments in platforms such as fscom, Kyriba, Fenergo and Condatis.
Tech-led
Duncan Calam, partner and head of Bridgepoint Growth, commented: “Zuto is an exceptional technology-led platform, bringing greater transparency and trust to the UK car finance market.
“The business is well placed to continue its growth as the sector evolves, supported by its culture, sophisticated technology and consumer-first ethos.
“We’re delighted to partner with Jim – a visionary founder who has created a UK category leader – and his team as we scale further in this large and dynamic market.”
SEP senior advisor, Tony Robison, said: “We’re proud to have partnered with Jim and the Zuto team as they’ve built a market-leading business in UK car finance.
“Their growth, innovation and commitment to improving the customer experience has been exceptional.
“It’s been a privilege to support their journey, and we’re delighted to see them take this next step with Bridgepoint.”
SEP was advised by GP Bullhound Corporate Finance, Addleshaw Goddard (legal) and BDO (financial).
Zuto was advised by Eversheds Sutherland (legal), BDO (tax), and Liberty (management advisory).
Bridgepoint was advised by Houlihan Lokey (corporate finance), Goodwin Procter (legal – equity), Stephenson Harwood (legal – debt), OC&C (commercial), OMMAX (digital), Deloitte (financial), EY (tax), Capstone (regulatory DD), fscom (regulatory advisory), S-RM (cyber), Achilles (ESG), Lockton (Insurance). Senior debt facilities for the transaction were provided by Shawbrook Bank.
Hugh Campbell, founding partner of GP Bullhound, said: “James, Ryan and I met back in 2011 when I opened up the Manchester office for GP Bullhound.
“It’s been a pleasure to see how their vision to improve the used car buying experience has become a profitable reality. We wish them the very best as they continue their journey with Bridgepoint.”
- Picture caption: Zuto’s management team of Aimee Gethin, COO; Jim Wilkinson, co-founder and CEO; and Dave Parsons, CFO.