Venture Capital: Online, U.K.-Based, Used Car Marketplace Cazoo Raises $310M
Car sales have shifted online at a blistering pace during COVID.
Cazoo, the UK-based online marketplace for used cars, announced Thursday that it had raised £ 240 million ($ 310 million) in its latest funding round from an “all-star line-up of leading investors.”
The round was led by General Catalyst, D1 Capital Partners, and funds managed by Fidelity Management & Research Company and Blackrock. Other new and existing investors included L Catterton, Durable Capital Partners, The Spruce House Partnership, Novator, Mubadala Capital, and dmg ventures, amongst others. (CNBC)
According to Tech Crunch, the funding is all-equity and includes no debt.
The round valued the 2018-founded start-up at £ 2 billion ($ 2.6 billion). The valuation has doubled from the previous fundraising in June when it notched a value of $ 1 billion.
In aggregate, Cazoo has raised £ 450 million to date.
Cazoo online used cars
Cazoo’s marketing motto on its used car website reads “buyer finance online; will deliver it; love it or return it.”
Cazoo assures that it owns all the cars on its website and that all of them are thoroughly inspected and reconditioned to the highest standards.
Customers can complete selection, purchase, and financing completely online. The site lets them inspect cars inside and out from every angle through 360-degree digital photography.
Customers can pick up the car from a nearby Cazoo customer center or have it delivered to their home. The company stores its cars centrally in the Midlands. It is therefore able to complete deliveries within 72 hours anywhere in the UK.
Furthermore, Cazoo offers a moneyback guarantee if the customer is not happy after using the car for seven days.
Post-purchase, the company also provides a 90-day warranty and RAC roadside assistance.
The used car platform was launched in December 2019. However, it has already clocked revenues of over £ 100 million and delivers thousands of cars every month.
“Over the past few months we have seen an acceleration in the shift from offline to online car buying as UK consumers have continued to embrace our unique and market-leading proposition,” said Alex Chesterman OBE, Founder & CEO of Cazoo, in a statement. “This latest funding demonstrates the conviction of some of the world’s best investors in both our business model and the team as well as the UK market.”
Related Story: Electric Vehicle Startup Rivian Raises $2.5B
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