Amsterdam-based CarNext, an online B2C and B2B used car marketplaces, has announced that it has been carved out from LeasePlan — a Dutch company that manages a fleet of 1.8 million cars in 30 countries.
As part of this deal, CarNext is now a fully independent business owned by a consortium of investors including TDR capital, a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), GIC, PGGM, ATP and Goldman Sachs Asset Management
It has also raised €400M in a fresh round of funding to accelerate its next phase of growth.
In addition, the company has entered into an exclusive Long-Term Service Agreement with LeasePlan, that guarantees CarNext a supply of close to 300,000 high-quality used cars annually to sell through its B2C and B2B marketplaces across Europe,
Tex Gunning, CEO of LeasePlan, mentions, “LeasePlan will continue to focus on what we do best: leading the car subscription megatrend, supported by an industry-leading remarketing partner delivering the best prices for our high-quality used vehicles. I am extremely proud of the fully digital business model we’ve built at CarNext, and wish our colleagues every success as they continue to disrupt the exciting used car market.”
CarNext aims to change the way people buy a used car
Traditionally, the used car market has been fragmented, localised and inefficient, according to CarNext. And to address these limitations and transform the experience for everyone in the used car market, including the customers, traders, or suppliers, the Dutch company was built.
The company provides a B2C marketplace across Europe and an integrated online platform that enables retail customers to buy high-quality used cars online; both from LeasePlan’s Car-as-a-Service fleet, and from a network of trusted third-party suppliers. The company offers fixed all-in pricing, a 228-point reconditioning check, a 12-month warranty, home delivery, and a 14-day no-questions-asked return guarantee. Besides, users can also part exchange their old car and access a suite of necessary services, such as financing and extended warranties, fully online.
The company also operates as a B2B auction platform and digital trader app in 22 countries. This platform offers CarNext’s trusted used car suppliers, including LeasePlan, access to a digital end-to-end service to remarket vehicles to either B2B buyers or directly to consumers. Besides, the platform also enables CarNext’s suppliers to plug-in to its growing network of 30,000+ traders and benefit from their remarketing services; including vehicle transportation, storage, inspection, and reconditioning.
Recent growth
In 2020, CarNext sold close to 250,000 vehicles. Currently, CarNext’s B2B operations are present in 22 countries, while its B2C marketplace is operational in seven of the largest markets across Europe.
Also, in 2020, CarNext sold 40,000 cars B2C and 200,000 cars via its digital B2B auction platform and trader app across Europe. This represents a GMV (gross merchandise value) of €2.5B.
Over the past year, CarNext has also accelerated its strategy in France and witnessed triple sales volumes. Additionally, the company also reported that its Cars on Display (CODs) increased to an average of 3,000, making the company France’s largest online used car marketplace.
Last month in June, the company announced its partnership with ProovStation and DEKRA to pilot virtual car inspections using AI technology. With this development, ProovStation’s scanner will enable CarNext to improve its inspection and remarketing processes to automate the scanning and damage detection part of the reconditioning process. The scanner will also ensure checks for all cars offered by CarNext in the Netherlands before they are reconditioned on 228 check points.
Capital utilisation
With the raised capital, CarNext will accelerate its vehicle sourcing from trusted third parties, expand its offering across Europe in order to boost the growth of its customer base.
Also, from this month, the company is accelerating its growth in Germany by specifically targeting brand building, sourcing, and infrastructure development, with an aim to be the biggest online used car marketplace in the country by the end of the year.
CarNext’s Managing Director and CFO, Maarten van Neerven, says, “CarNext has rebuilt the experience of buying a used car entirely online with complete peace of mind, mobilising the latest technology to put customers in the driving seat and make buying a car fun, easy and transparent. With the support of our investors, CarNext is now in an even stronger position to accelerate its growth strategy across Europe, boost retail sales and achieve network effects. The timing could not be better. Post-Covid, more people than ever want to buy their next used car online, and we have the cars and technology to deliver.”
