UK-based Cazoo, which is backed by media company Daily Mail and General Trust (DMGT), launched its automotive e-commerce platform yesterday with £25m ($32.2m) of new funding.
Venture capital firm General Catalyst and Mubadala Capital, a vehicle for Abu Dhabi-owned investment fund Mubadala, provided the funding along with undisclosed additional participants.
Cazoo’s online platform allows users to buy used cars through a mechanism that involves the company handling home delivery of each vehicle. It has 1,500 cars listed on the platform, all of which it owns and has reconditioned.
DMGT’s corporate venturing arm, DMG Ventures, joined Stride.VC, Entrée Capital and Octopus Ventures to invest $38.3m in the company in December 2018 before all four added $30.4m in September this year.
Alex Chesterman, Cazoo’s founder and chief executive, said: “Cazoo makes used car buying simple and convenient like buying any other product online today. We take away the need to travel, to haggle, to spend countless hours at a dealership and to risk any buyer’s remorse.
“With Cazoo, you can purchase or finance a used car entirely online, have it delivered to your door in as little as 72 hours and have seven days to make sure it fits your lifestyle. And if you don’t love your Cazoo car, we will come and collect it for free.”
The latest funding will be channelled into boosting the startup’s marketing and operations as it seeks to build headcount.
