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Goldman Sachs and Numis acted as joint placement agents to Cazoo in the funding round as the firm looks to use the funds to boost its marketing.
The UK-based used auto sales platform Cazoo has doubled its valuation from about £1 billion after its last funding round in June to about £2 billion ($2.6 billion) after raising £240 million in a recent funding round led by General Catalyst. The company made this known in an announcement restating the company’s potentials to attract investors from all over the world despite the COVID-19 pandemic blows to the markets.
As reported by CNBC, the coronavirus pandemic resulted in a decline in global auto sales, and an earlier move online by Cazoo has given the firm a comparative advantage to serve its growing customers during the pandemic.
Cazoo founder Alex Chesterman said:
“Over the past few months we have seen an acceleration in the shift from offline to online car buying as UK consumers have continued to embrace our unique and market-leading proposition. This latest funding demonstrates the conviction of some of the world’s best investors in both our business model and team as well as the UK market and gives Cazoo the firepower to deliver on our plans to provide the best possible car buying experience for UK consumers.”
Besides General Catalyst, Cazoo’s recent funding round also got funded by the like of L Catterton, Durable Capital Partners, The Spruce House Partnership, Novator, Mubadala Capital, dmg ventures as well as D1 Capital Partners and funds managed by Fidelity Management & Research Company and BlackRock.
While the investors have expressed their confidence in the company as well as in the team piloting the model. “We’re excited to partner with Alex and the team at Cazoo. They have generated enormous value for customers and shareholders in their previous internet ventures and we are confident that Cazoo will greatly accelerate the digital transformation of the used car industry and dramatically improve the car buying experience for consumers in the UK,” said Dan Sundheim, Founder of D1 Capital.
Goldman Sachs Group Inc (NYSE: GS) and Numis acted as joint placement agents to Cazoo in the funding round as the firm looks to use the funds to boost its marketing, product development, and hiring new staff as reported by CNBC.
Cazoo Changing the Used Auto Sales Narrative in the UK
Cazoo was founded in the UK in 2018 with a highly experienced management team, led by Founder & CEO Alex Chesterman OBE. The company aims at simplifying the process of purchasing used vehicles with more enhanced value.
According to the company, its main mission is to offer a better selection, transparency, convenience, and peace of mind when purchasing cars online and prides itself on fast-tracking either the delivery or pickup of the vehicle within 72 hours. The company has raised a total of £450m to date and has achieved revenues of over £100m since its launch less than a year ago, a major UK record.