Online used car sales platform Cazoo has secured a further £25m in funding ahead of its planned launch later this year.
The latest injection takes the total invested in the firm to over £55m. The round was led by existing investors dmg ventures (the venture arm of DMGT), Stride.VC, Octopus Ventures and Entrée Capital. The funds will be used to accelerate the growth of the company and to invest in marketing and operations.
In the nine months since the company’s inception, Cazoo has grown to more than 100 employees and signed several strategic partnerships covering vehicle purchasing, financing and logistics.
The Cazoo platform, scheduled for launch later this year, is designed to make buying a used car online as simple as buying any other product online. Customers will be able to select from thousands of cars online and have their selected vehicle delivered to them in as little as 48 hours.
Alex Chesterman, founder and chief executive of Cazoo, said: “We are delighted to have closed this further funding round, giving us significant firepower to fuel our growth after we launch after this year.
“We are assembling a world class team and looking forward to transforming the used car market by delivering UK consumers the best car buying experience in terms of selection, value, quality and convenience.”
Lord Rothermere, chairman of DMGT, added: “We are really impressed with the progress that Cazoo has made in such a short period of time. Alex’s passion for using technology to improve consumer experiences and his ability to execute are second to none.
“We are delighted to be backing Cazoo to deliver a wholly new and better approach to buying a used car and to disrupting this £50bn market.”
The company recently announced that it has made seven appointments to senior roles, covering marketing, product, technology, data and finance. Appointments include the former chief financial officer of Paddy Power Betfair, the former chief technology officer at made.com, and the former chief customer officer at moneysupermarket.
“I am delighted to welcome such great talent to the Cazoo team,” said Chesterman. “These latest hires each bring with them deep retail and digital experience and proven track records in their respective fields.”