Online car buying platform Cazoo has secured a further £100m of investment, in a funding round led by DMG Ventures.
Since being founded less than 18 months ago, Cazoo has raised a total of more than £180m. The company launched to market in December 2019 and generated over £20m in revenues in its first three months.
Cazoo owns and fully reconditions all its cars before offering them for sale and delivers them to customers in a two-hour delivery slot. Every Cazoo car comes with a 7-day money-back guarantee, a 90-day warranty and roadside assistance. Buyers can purchase or finance available cars online as well as getting an instant offer for any part exchange.
Cazoo recently adjusted its thorough vehicle handover process to now be done at a safe distance in order to protect both its customers and employees. As with other retail marketplaces, the current coronavirus situation is accelerating the shift from offline to online, said Cazoo.
Alex Chesterman, founder and chief executive of Cazoo, said: “It’s clear that UK consumers are ready to buy cars online. 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 focused 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 added: “We are very excited to continue to support Alex and the team at Cazoo. The pace of what they have achieved and the level of adoption they have seen in the first few months since launch is remarkable. With almost 8m 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.”
Other investors in the round included General Catalyst, CNP (Group Frère), Mubadala Capital, Octopus Ventures, Eight Roads Ventures and Stride.VC.