London-based used-car marketplace Cazoo has scored $31 million in pre-launch funding led by existing investors, propping up the startup’s total funding to $68 million.
The company strives to become the “equivalent to Carvana” for the U.K. used-car market, which is valued at $60 billion with 8 million used cars sold annually, the company noted in a press release. The platform will enable U.K. consumers to buy, sell, trade and finance used cars online.
Cazoo, which was founded late last year by Chief Executive Alex Chesterman, plans to launch this year with an inventory of used vehicles in the “thousands” and a delivery system with a turnaround time of 48 hours, Chesterman said in a press release.
The latest investment, secured Sept. 2, was led by Dmg ventures, Stride.VC, Octopus Ventures, and Entrée Capital. With the new funding, Cazoo will invest in “marketing and operations,” the company noted. Last year, the startup raised $37 million in seed funding.
Cazoo is likely to face competition as alternative platforms for car ownership are gaining traction in the U.K. Last month, Volkswagen Financial Services and Daimler Mobility expanded online used-car marketplace Heycar into the U.K., bringing an inventory of more than 100,000 vehicles across 1,400 dealerships. In June, another London-based startup, called Motorway, secured $13.9 million in Series A funding led by hedge fund Marchmont Ventures and LocalGlobe.
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