Tech startup from Zoopla founder raises further £25m ahead of launch
A new tech business seeking to disrupt the used car market has raised a further £25m ahead of its planned launch later this year.
Tech startup Cazoo has raised funds in its most recent investment round led by existing investors, with participation from dmg ventures (the venture arm of DMGT plc), Stride.VC, Octopus Ventures and Entrée Capital.
Founded by property platform Zoopla and subscription service LoveFilm founder Alex Chesterman OBE, Cazoo aims to enable consumers to select from thousands of cars online and have their vehicle delivered within 48 hours.
The firm now has over 100 employees since launching nine months ago, and has raised more than £55m ahead of its scheduled launch later in the year.
The funds from the latest round will be used to further grow the team, as well as invest in marketing and operations.
Alex Chesterman, founder & CEO of Cazoo explained: “We are delighted to have closed this further funding round, giving us significant firepower to fuel our growth after we launch later 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 commented: “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.”
Fred Destin, partner at Stride.VC added: “Buying a used car is a poor consumer experience and Cazoo is reimagining it from the ground up to be delightful.
“We’re excited to be doubling down on our support for Alex and the exceptional team he has assembled as they build a transformational consumer brand and deliver the best experience for used car buyers across the UK.”
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