Cazoo raises £100m despite coronavirus crisis
Cazoo, the online car marketplace, has today announced that it has raised £100m funding to grow the business, despite the ongoing coronavirus crisis. The firm is the latest venture from Alex Chesterman, who previously founded LoveFilm and Zoopla.
Cazoo has raised a total of over £180m since being founded less than 18 months ago, and 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.
Since Cazoo’s launch in December, UK consumers have been quick to embrace buying cars fully online in much the same way as buying any other product today. Cazoo has already sold thousands of cars, delivering them to customers across every region of the UK. The business has generated over £20m in revenues in its first three months.
Cazoo 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.
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. 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 organisations move essential supplies around the country via our fleet of car transporters in these difficult times.”
Manuel Lopo de Carvalho of DMG Ventures commented: “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.”