Cazoo raises £100 million
Cazoo , UK’s online marketplace for buying used cars, has raised £100 million, bringing its total funding to £180 million since being founded in 2018. The 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.
The online-only retailer provides platform which enables people to purchase a used car and have it delivered in 72 hours. The company owns and fully reconditions all its cars and every car comes with a 7-day money-back guarantee, free comprehensive 90-day warranty and roadside assistance, and a free 7-Day Driveaway Insurance from Tempcover which customers need to activate before Cazoo handovers the car.
Since launching in December of last year, Cazoo has served thousands of customers, delivering cars to them across every region of the UK and has generated over £20 million in revenue.
“It’s clear that UK consumers are ready to buy cars online in a convenient, hassle-free way. Cars are an important form of transport for many in our society, whether conducting deliveries or getting to essential jobs and we want to ensure that those who need one can continue to get one. 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 organizations move essential supplies around the country via our fleet of car transporters in these difficult times.” – Alex Chesterman, Founder & CEO of Cazoo.
“We are very excited to continue to support Alex and the team at Cazoo. The pace of what they’ve achieved and the level of adoption they’ve seen in the first few months since launch is remarkable. With almost 8 million used car transactions a year in the UK, there is a clear opportunity to provide a more convenient way to buy a car and shift part of the market online.” – Manuel Lopo de Carvalho of DMG Ventures.
