- General
- October 1, 2020
- 3 minutes read
Cazoo Lands $311 Million Round
Alex Chesterman, Founder and CEO, Cazoo. Photo credit: Cazoo Cazoo, a UK-based online used car marketplace, has announced that it’s…
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| Alex Chesterman, Founder and CEO, Cazoo. Photo credit: Cazoo |
Cazoo, a UK-based online used car marketplace, has announced that it’s secured £240 million ($311 million) in new funding that values it at over £2 billion ($2.5 billion), just six months after the company closed a previous round of over $100 million. The new funding brings the total amount of financing raised by Cazoo to nearly $600 million, notably in just two years after the company was founded. Cazoo was founded in 2018 by Alex Chesterman, a well-known British entrepreneur who previously founded property tech company Zoopla and saw it through a £2.2 billion acquisition by Silver Lake Partners in 2018. Before founding Zoopla, he also founded a previous video-on-demand company, LoveFilm, that sold to Amazon in a £200 million deal in 2011.
Chesterman now appears to have struck gold yet again, more so amid a coronavirus pandemic where people have largely eschewed public transportation in favor of individual cars. Cazoo provides an app-based way for UK residents to view and purchase used cars. The company’s latest round came from a group of investors including General Catalyst, D1 Capital Partners, Fidelity, BlackRock, Durable Capital Partners, and Mubadala, the entire round being all-equity and no debt.
Cazoo says that it’s hit £100 million in annual revenue in less than a year after its formal launch. It’s not known whether the company is profitable.
