Cazoo, which provides an app-based way to browse and buy used cars has picked up £240 million ($311 million). The funding comes only six months after the company raised $116 million.
This latest funding is being led by General Catalyst, D1 Capital Partners and funds managed by Fidelity Management & Research Company and Blackrock, with other new and existing investors participating. The list includes L Catterton, Durable Capital Partners, The Spruce House Partnership, Novator, Mubadala Capital and dmg ventures. It brings the total raised by the company to date to £450 million ($582 million).
Founded by Alex Chesterman, Cazoo says that it has hit £100 million in revenues since launching less than a year ago, selling and delivering “thousands” of cars every month. It does not disclose whether it is profitable.
The company’s boost comes from a new surge of interest not just from more people having a car for getting from A to B and I’ll say as a London resident that traffic definitely feels worse these days but also from people looking for online, virtual ways of doing this to avoid the physical contact that typically comes with more traditional ways of buying vehicles.
“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,” said Chesterman in a statement. “This latest funding demonstrates the conviction of some of the world’s best investors in both our business model and 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.”