Cazoo (www.cazoo.co.uk), which makes buying a car much like buying any other product online, announced that it has raised a further £100m of funding as it seeks to accelerate the UK’s shift to online car buying. Cazoo 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, a record for any UK start up in its first year of operation. Our Europe Ventures team participated in the round alongside DMG Ventures, General Catalyst, CNP (Groupe Frère), Mubadala Capital, Octopus 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 from the tip of Cornwall to the top of Scotland and the business has generated over £20 million in revenues in its first 3 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. Every Cazoo car comes with a 7-day money-back guarantee, free comprehensive 90-day warranty and roadside assistance. Buyers can purchase or finance one of the thousands of Cazoo cars entirely online as well as getting an instant offer for any part exchange.
Cazoo has 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 transactions given its unique delivery proposition.