Cazoo raises £100m to shift car buying online
Online car buying platform Cazoo has announced the raise of £100m in funding as it looks to shift the UK to buying cars online.
Launched at the end of last year by Alex Chesterman, who founded film rental service LoveFilm, which sold to Amazon, and property market Zoopla, which sold for over £2.2bn last year.
The latest round brings the total amount raised by the firm to £180m. Cazoo said it is a record for a UK start-up in its first year of operation, having raised twice before launch.
This latest funding round was led by DMG Ventures alongside other investors including General Catalyst, CNP (Groupe Frère), Mubadala Capital, Octopus Ventures, Eight Roads Ventures and Stride.VC.
It said it has already sold thousands of cars across the UK and has generated over £20m in revenues in its first 3 months.
The start-up owns and fully reconditions its cars before sale with free delivery and a 7-day money-back guarantee. Buyers can purchase or finance a car entirely online and are given an instant offer for any part exchange.
“It’s clear that UK consumers are ready to buy cars online in a convenient, hassle-free way,” said its founder Chesterman.
“This new round of funding is a strong signal from investors of the scale of the opportunity.”
Chesterman said the firm is currently assessing the viability of using its delivery fleet to help move essential supplies around the country “ inthese difficult times.”
Manuel Lopo de Carvalho of DMG Ventures added: “We are very excited to continue to support Alex and the team at Cazoo.
“With almost 8 million used car transactions a year in the UK, there is a clear opportunity to provide a more convenient way to buy a car and shift part of the market online.”