As the UK lockdown forces Brits to go online for everything from clothes to bog roll, used car portal Cazoo is aiming to get consumers to add a new motor to their shopping lists, on the back of a fresh round of funding which has boosted the firm’s coffers by another £100m.
The portal is backed by Lovefilm and Zoopla founder Alex Chesterman and launched in December. It has already raised £80m as it seeks to drag the market – typified by Arthur Daley and Alexei Sayle’s “Hello John Got a New Motor” – into the digital age.
The new funding has been led by DMG Ventures, with CNP (Groupe Frère), Octopus Ventures, Eight Roads Ventures, Stride VC, General Catalyst and Mubadala Capital. The latter two have already invested £25m in the business.
The platform is aimed at transforming how 8 million used cars are bought each year by putting the entire process online and allowing vehicles to be delivered direct to the customer’s door within 72 hours.
The firm has built an impressive team, ex-Moneysupermarket boss Piers Stobbs recently joined as chief data officer, being reunited with a number of former Moneysupermarket executives, including chief customer officer Darren Bentley, digital marketing director Ercan Kamil and brand director Lucas Bergmans. Meanwhile Katherine Hurst was hired as customer experience director from Paddy Power Betfair, where she was CRM director.
Engine, Wunderman Thompson and Goodstuff handle the creative, CRM and media business respectively.
Commenting on the latest funding round, Chesterman said: “It’s clear that UK consumers are ready to buy cars online in a convenient, hassle-free way. Cars are an important form of transport for many in our society, whether conducting deliveries or getting to essential jobs and we want to ensure that those who need one can continue to get one. This new round of funding is a strong signal from investors of the scale of the opportunity.
“Our mission is to deliver the best experience for car buyers across the UK by delivering better selection, value, convenience and quality. That mission is now also focused on keeping consumers safe by not having to leave their homes to buy a car. We are also looking at how Cazoo can help other organisations move essential supplies around the country via our fleet of car transporters in these difficult times.”
Cazoo has also implemented new procedures to ensure safe handover during the coronavirus outbreak. The process can now be done at a safe distance to protect both the firm’s customers and employees.