UK on-line used automotive market Cazoo doubles valuation to $2.6 billion
Based in 2018 by Alex Chesterman, creator of British property website Zoopla, Cazoo goals to fill an eBay-shaped hole within the automotive business. On-line gross sales nonetheless account for a tiny slice of the general market globally.
The corporate solely launched its e-commerce platform for used vehicles in December 2019 however has already seen revenues surge to £100 million, a spokesperson for the agency instructed CNBC. It is now value greater than twice the $1 billion it was valued at in a June funding spherical, and has raised a complete of £450 million to this point.
“Over the previous few months now we have seen an acceleration within the shift from offline to on-line automotive shopping for as U.Okay. customers have continued to embrace our distinctive and market-leading proposition,” Chesterman, Cazoo’s CEO, mentioned in a press release Thursday.
General auto gross sales have been beneath large strain this 12 months resulting from coronavirus lockdowns and their crippling impact on the worldwide financial system. Based on IHS Markit, worldwide automobile gross sales are forecast to say no 22% this 12 months to 70.3 million models.
Even within the used automotive phase gross sales have suffered. The U.Okay. used automotive market plunged round 49% within the second quarter to simply over 1 million transactions because of the nation’s Covid-19 shutdown, in response to commerce physique SMMT.
Cazoo’s newest spherical was led by U.S. enterprise capital agency Common Catalyst, American investor Dan Sundheim’s D1 Capital Companions and funds managed by Constancy and BlackRock. Different backers embrace L Catterton, Sturdy Capital Companions and the Abu Dhabi sovereign wealth fund Mubadala.