Carwow Drives $55M in Funding

In a drive to speed up technology and platform advancement, London-based online vehicle marketplace Carwow has secured $55 million in investments from Hercules Capital, according to a Monday (Dec. 6) report from UK Tech.

In addition to broadening its user base internationally, the company said it would bolster its 350-member sell-your-car division with another 150 positions within the next month, according to the report.

Following the acquisition of car-selling platform Wizzle, Carwow launched its sell-your-car division in 2021, according to the company’s website. Through the program, Carwow’s more than 12 million users selling their cars can compare offers from dealers, similar to how they receive offers when buying new cars.

The company has grown its sell-your-car division 600% within the last six months, according to the Carwow LinkedIn page. In addition, the company reached a 7,000 live listings milestone within two months.

“All this has been achieved so rapidly by just leveraging what already exists within carwow; our huge reach via content, our great relationships with dealers and our in-house technology,” the company wrote on LinkedIn. “It’s our largest ever fundraise (£40m in Sterling) and is a credit to everyone who is helping us create the ultimate car buying and selling experience.”

Fellow online vehicle marketplace Cazoo last week announced an expansion of its car marketplace in France and Germany following the acquisition of Germany’s leading car subscription service, Cluno, according to PYMNTS.

The vehicles Cazoo sells come with a 12-month warranty, as well as a seven-day money back guarantee and can be delivered directly to customers’ homes.

Read more: UK’s Cazoo Launches in France and Germany, Intensifies Competition in Europe’s Used Car Market

Amid the pandemic, consumers are more readily purchasing vehicles online, PYMNTS reports.

Carvana, a used car digital marketplace, announced $1.12 billion in revenue and sales of 55,098 units in the second quarter of this year. The revenue reflects a 13% increase from 2019 with cars sold, marking a 25% year-over-year spike.

See also: Pandemic Revs Up Digital Car Sales For Online Platforms