AI-powered vehicle data startup Cazana.com has raised £1.56m through Crowdcube, led by Passion Capital, previous backers of Monzo and Nested.
The total raised represents almost 160% of the firm’s original investment target, meaning Cazana becomes one of the first companies ever to overfund in the initial private round on the Crowdcube platform.
Passion Capital added a further £100k to their initial investment during the course of the public raise.
Cazana, which uses big data and predictive analytics technology to assess the value and risk of vehicles, will use the injection of funds to support its global expansion plans and accelerate the monetisation of its B2B sales. The company will also explore the development of its services, including the newly acquired Car & Classic website.
Launched in 2013, Cazana is predicted to hit £22m in revenue in the next three years. The successful funding round also points to wider success in the evolving motor industry, which is looking increasingly to new technologies and innovations to boost growth in the future.
Tom Wood, chief executive of Cazana, noted the growing potential of the motor industry: “The raise will accelerate our plans for UK growth, secure a stronger foothold in the US, invest in our consumer-facing platforms and expand our reach and services to better help both consumers and businesses.”
Robert Dighero, partner at Passion Capital, added: “The fact the public have so enthusiastically backed Cazana with this overfund shows that the services it offers are in high demand, with businesses and consumers both greatly benefiting from the shared insight.”
At the end of 2018, Cazana signed a deal with accountancy and advisory MHA MacIntyre Hudson to refer motor sector clients to Cazana’s products. (https://www.verdict.co.uk/motor-finance-online/news/company-news/cazana-strikes-referral-partnership-mha-macintyire-hudson/ )
The accountancy’s customers get access to Cazana’s present and future valuation tools, which are powered by an engine accruing transaction data in real time.
The referral partnership is aimed at dealerships and fleet managers. MHA MacIntyre Hudson’s recent work in the motor sector includes leading a campaign that resulted in HMRC agreeing to VAT exemption on dealer deposit contributions.