Generally, buying an old car has always been a daunting task. Right now, the used car market is largely unorganised due to a lack of transparency, trust, and good dealers. This created a huge gap in the market, which is now being plugged by startups, giving online vehicle-buying a new experience with new-age technology.
Based out of London, Cazoo is one of the companies that aims to transform the way people buy used cars in the UK by providing better selection, transparency, convenience, and peace of mind.
Records broken, funds raised
In the latest development, Cazoo raised additional £240M (approx €265M) funding led by General Catalyst, D1 Capital Partners, and funds managed by Fidelity Management & Research Company and Blackrock alongside other new and existing investors including L Catterton, Durable Capital Partners, The Spruce House Partnership, Novator, Mubadala Capital, and dmg ventures, amongst others.
This brings Cazoo’s total amount raised to £450M (approx €494M). Goldman Sachs International and Numis acted as joint placement agents to Cazoo on this latest fundraising which was significantly oversubscribed.
Founded by Alex Chesterman, his third startup after Zoopla and LoveFilm, Cazoo has already achieved revenues of over £100M (€110M) since its launch less than a year ago – another UK record.
Post this funding, Cazoo’s valuation has reportedly doubled since its last funding round earlier this year. The company raised £25M (€27.5M) funding and became the UK’s fastest ever unicorn with a valuation of $1B.
Transparency and convenience play a crucial role
Consumers have rapidly embraced the transparency and convenience of buying used cars entirely online, claims the company.
The London-based used car platform owns and fully reconditions all its cars before offering them for sale exclusively on its website.
7-day money-back guarantee
It lists thousands of cars in stock at any time, all stored centrally in the Midlands. They are available either for home delivery anywhere in the UK or collection from one of its Cazoo Customer Centres within 72 hours. Every Cazoo car comes with a full 7-day money-back guarantee and a comprehensive 90-day warranty.
Main image credits: Cazoo