Cazoo, a startup that buys in used cars and then sells them online, has raised £100 million (approx €108.3 million) funding as it seeks to accelerate the UK’s shift to online car buying.
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. To date, the company has raised more than £180 million (approx €195.4 million) since its inception (less than 18 months ago), a record for any UK startup in its first year of operation.
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Embracing buying cars fully online!
Since Cazoo’s launch in December, the UK consumers have been quick to embrace buying cars fully online in much the same way as buying any other product today.
The company has already sold thousands of cars, delivering them to customers across every region of the UK from the tip of Cornwall to the top of Scotland, and the business has generated over £20 million (approx €20 million) in revenues in its first 3 months.
Reconditions cars before selling!
Cazoo was founded in 2018 and had a highly experienced management team, led by Founder & CEO Alex Chesterman OBE. The UK company owns and fully reconditions all its cars before offering them for sale and delivering them free to customer’s doors in a convenient two-hour delivery slot.
Every Cazoo car comes with a 7-day money-back guarantee, free comprehensive 90-day warranty, and roadside assistance. Buyers can purchase or finance one of the thousands of Cazoo cars entirely online as well as getting an instant offer for any part exchange.
The used-car platform has recently adjusted its thorough vehicle handover process to now be done at a safe distance to protect both its customers and employees.
Alex Chesterman, Founder & CEO of Cazoo, said:
It’s clear that UK consumers are ready to buy cars online in a convenient, hassle-free way. This new round of funding is a strong signal from investors of the scale of the opportunity. Our mission is to deliver the best experience for car buyers across the UK by delivering better selection, value, convenience, and quality. That mission is now also focussed on keeping consumers safe by not having to leave their homes to buy a car. We are also looking at how Cazoo can help other organisations move essential supplies around the country via our fleet of car transporters in these difficult times.
Main image credits: Cazoo
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