London-based Carwow Group, which encompasses the Carwow online marketplace along with Auto Express, Evo, Driving Electric, and Carbuyer, has raised $52 million (£41 million) in a recent funding round. Founded in 2013 by James Hind, Alex Margolis, and David Santoro, Carwow has facilitated the buying and selling of cars for over 10 million customers.
The latest funding round was led by Bessemer Venture Partners, a global venture capital firm noted for its investments in tech companies such as LinkedIn and Shopify. Existing investors, including Accel, Balderton, Episode 1, and Vitruvian, also participated in the round.
Carwow plans to use the new investment to expand its Sell My Car (SMC) service in the UK, aiming to attract more customers and source more cars for its dealer partners. Additionally, the company intends to introduce the SMC service to its German operation in 2025.
John Veichmanis, CEO of Carwow Group, commented, “Over the course of the last three years, we’ve worked tirelessly to develop our car-changing proposition in the UK, giving consumers access to thousands of partners that can help them buy a new car and sell their old one. Our customers love the breadth of choice and convenience of managing every step of their car-changing journey online, and partners rely on us to help drive sales of new cars and source stock.”
In 2021, Carwow secured $55 million in venture debt funding from US firm Hercules Capital. The recent funding round’s structure—whether it is debt or equity—is yet to be clarified, as UKTN has reached out to Carwow for more details.
In June 2021, Carwow acquired Wizzle, an app that helps car dealers appraise and value used cars, thereby enhancing connections between online car buyers and dealers. Prior to this acquisition, Carwow could only provide one offer from a single provider.
