UK based used cars sales platform Cazoo has raised $311 million at a gigantic $2.5 billion valuation, backed by the growing demand of personal vehicles in the country.
COVID 19 has certainly pushed a lot of businesses into depression, but it has acted as a savior for others. While movie theaters tanked, Netflix streaming became the norm. While schools closed down, remote learning took over. Similarly, as public transportation around the world continues to take a hit, many people are opting to buy their own vehicles, which has allowed Cazoo to grow at an extravagant rate. Backed by an exceptional trajectory, Cazoo has recently raised $311 million in a funding round that valued the company at $2.5 billion, doubling its valuation in just 6 months.
The round was led by General Catalyst, D1 Capital Partners and funds managed by Fidelity Management & Research Company and Blackrock. Many existing and new investors also participated in the round, including L Catterton, Durable Capital Partners, The Spruce House Partnership, Novator, Mubadala Capital and dmg ventures.
Earlier this year, the company had raised $116 million, while valuing itself at $1 billion. At that time, many experts suggested that the platform was over estimating its worth, which makes the $2.5 billion even more impressive.
The company says that the funds will be used to grow the team, brand and infrastructure, to create the best car shopping experience for all UK residents.
Cazoo is a one stop shop for all you car needs. The company actually owns all of the car on its platform, which means that every vehicle on Cazoo’s website has been thoroughly inspected and reconditioned to the highest standards. Moreover, users can buy their cars directly online, which is another reason why the company’s business boomed in the pandemic. Over a complete transaction, Carzoo delivers the car at your location, the Uber Eats of cars, if you will.