Online used-car retailer launches, scores $32M from investors | Auto Finance News | Auto Finance News

Online used-car retailer launches, scores $32M from investors

London-based used-car marketplace Cazoo has launched its platform today as the startup scored $32 million in funding led by venture capital firms General Catalyst and Mubadala Capital. Cazoo has raised more than $100 million since its founding in 2018.

Cazoo, which strives to become the U.K. equivalent to Carvana, allows consumers to buy, sell, trade and finance used cars online. The U.K. used-car market is valued at $60 billion, with 8 million used vehicles sold annually, according to Cazoo Founder and Chief Executive Alex Chesterman.

The website enables consumers to choose from an online inventory of more than 1,600 used vehicles and, like Carvana, cars are delivered to consumers’ homes with the option to test drive the car for seven days or return it free of charge. The startup’s inventory includes SUVs, luxury, and electric vehicles, and the test run comes with seven days free insurance and a free comprehensive 90-day warranty and roadside assistance.

With the new funding, Cazoo will invest in “marketing and operations,” the company noted. Last year, the startup raised $37 million in seed funding. Dmg ventures, Stride.VC, Octopus Ventures and Entrée Capital led previous investments.

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