Cazoo, one of the UK’s fastest-growing tech startups, raises $311 million for its used car sales platform
Cazoo is one of the UK’s fastest-growing technology startups that makes buying a used car as simple and seamless as buying any other product online. With millions of used cars on the market, Cazoo aims to transform the way people buy used cars in the UK by providing better selection, transparency, convenience, and peace of mind.
Yesterday, Cazoo announced that it has raised another $311 million (£240 million) in funding. This latest round brings the total funding in the two years since Cazoo was founded to a record-setting £450m. Cazoo’s latest backers are some of the world’s most respected investors led by General Catalyst, D1 Capital Partners, and funds managed by Fidelity Management & Research Company and Blackrock alongside other new and existing investors. Cazoo has already achieved revenues of over £100m since its launch less than a year ago, another UK record.
Founded in 2018 by Alex Chesterman, Cazoo is a developer of an online used car marketplace designed to transform the way people buy, finance, or rent used cars. Cazoo’s platform enables customers to purchase a used car online and have it delivered to their door and provides a free 90-day warranty and roadside assistance, enabling the customers to embrace the simplicity of the online convenience, free delivery, and 7-day money-back guarantee. Alex Chesterman’s previous industry-changing ventures include both Zoopla and LoveFilm.
Unlike other online used car marketplaces, Cazoo owns and fully reconditions all its cars before offering them for sale exclusively on its website. It lists thousands of cars in stock at any time, all stored centrally in the Midlands, and available for either home delivery anywhere in the UK or collection from one of its Cazoo Customer Centres in as little as 72 hours. Every Cazoo car also comes with a full 7-day money-back guarantee and a comprehensive 90-day warranty.
Commenting on the Chesterman said, “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. 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 and gives Cazoo the firepower to deliver on our plans to provide the best possible car buying experience for UK consumers.”
Dan Sundheim, Founder of D1 Capital said, “We’re excited to partner with Alex and the team at Cazoo. They have generated enormous value for customers and shareholders in their previous internet ventures and we are confident that Cazoo will greatly accelerate the digital transformation of the used car industry and dramatically improve the car buying experience for consumers in the UK.”