Greek startup Spotawheel nabs €5M to bring transparency in online used car market

Greek startup Spotawheel nabs €5M to bring transparency in online used car market

This article will take you 2 minute(s) to read

As automakers continue to report plummeting sales numbers, the pre-owned car market is registering some serious growth quite lately.

Growth in used car sales! 

According to the report from INDICATA, 3.35 million online business-to-consumer (B2C) used cars were sold in the first quarter (Q1) of 2019 compared to 2.99 million new cars.

Even Germany, Europe’s most significant new car market, has seen new car sales stagnate for the first quarter of this year with just a 0.5% year-on-year increase, while online B2C used car sales have jumped up 5.0% on the same period.

Thanks to the massive wave of used-car sales startups launched across Europe, disrupting a marketplace that has mostly been untouched for years.

Secured €5M

Spotawheel is one such startup to hit the headlines recently with its funding news. The online-only used-car dealership startup has secured €5 million in a new funding round led by Venture Friends, Velocity Partners, and unnamed strategic investors.

To date, the company has raised €8 million since its launch in 2016. The investment includes both equity and debt financing.

Charis Arvanitis, Spotawheel co-founder, and CEO said: 

Used cars are one of the largest markets in value worldwide growing at a 5-7% rate annually, operating still primarily offline in a notoriously non-transparent way.

Hesitations! 

On the other hand, the danger of complicated processes, the risk of hidden fees, the fear or fraud, and the reality of fragmented supply all conspire to create a market that is handicapped by the suspicions of prospective buyers.

Changing the process from scratch!

Spotawheel is designed to answer these concerns. The company has redesigned the buying/selling process from scratch, resulting in a frictionless, trustworthy buying experience.

Furthermore, the customers can opt for a test drive or have the vehicle delivered to their doorstep, with a seven-day return policy – with the addition of a five-year limited warranty.

Mr. Arvanitis, said:

That warranty is underpinned by Spotawheel’s predictive analysis, which provides a summary of each vehicle’s condition and its expected failures. Spotawheel’s car sourcing model combines both debt-financed and marketplace practices, allowing the startup to source the best cars from private owners and B2B resellers across Europe.

Stay tuned to Silicon Canals for more European technology news.

How to build a strong digital Europe where scale-ups thrive

Leave a Reply

*