The Carwow Group, an online car buying and selling marketplace, has secured a $52m (£41m) investment to propel its UK expansion and enhance its presence in Germany and Spain.
The investment round was spearheaded by Bessemer Venture Partners, a venture capital company with investments in notable technology companies.
Go deeper with GlobalData
This round also saw the participation of several of Carwow’s prior investors, including Accel and Balderton.
Alex Ferrara, partner at Bessemer Venture Partners, commented: “Carwow’s consumer proposition is just as exciting, which is helping make car changing simpler for consumers across Europe – and with over nine million car changes a year alone in the UK, we’re looking forward to supporting the management team in growing the business and delivering on its true potential.
“Carwow’s focus on using its content expertise and footprint to drive its commerce services through dealer partnerships makes it unique and compelling in the category.”
Since its establishment, Carwow has assisted over ten million customers in their car-buying and selling journeys. Last year, the platform facilitated the purchase of cars worth nearly £3bn and listed cars for sale valued at £1.8bn through its Sell My Car service.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCarwow announced that the funds will be directed towards its strategic initiatives, focusing specifically on expanding and enhancing the Sell My Car service across the UK.
The money will also be used to draw in more customers and provide additional vehicles for its dealership network.
The company also plans to concentrate on refining its payment systems and advancing its transportation solutions.
Plans are also in place to introduce the Sell My Car service to the German market by next year, the company revealed.
Carwow Group CEO John Veichmanis said: “Given the phenomenal reaction to our strategic blueprint in the UK, we’re excited to use this new funding to take our proposition to our existing businesses in Germany and Spain.
“We’ll also continue to invest in new technologies to help our partners seamlessly appraise, buy and collect cars directly from the millions that use Carwow every month.”
In March, Carwow teamed up with Warranty Solutions Group (WSG) to launch BuySafe, a consumer-to-business auction programme to provide security to dealers purchasing vehicles through its online auctions.
BuySafe covers the repair or replacement costs of approximately 3,000 parts across vital systems such as the engine, gearbox, alternator, differential, infotainment, lighting units, and supercharger, including associated labour expenses.
In February, Carwow announced the acquisition of Autovia, an automotive content and commerce media company, in a deal of undisclosed value.
Known for its print and digital titles, including Auto Express, evo, DrivingElectric and Carbuyer, along with its annual automotive satisfaction survey, Driver Power, Autovia reaches over 15 million car owners, buyers and enthusiasts monthly.
