7:09 am, September 30, 2024
Carwow has reduced its losses by nearly a half after its Sell My Car auctions dramatically improved the group’s fortunes.
Carwow’s latest accounts show it generated revenues of £54.7m last year – up from £39.8m the year before – and saw losses fall from £29.4m in 2022 to £16.2m in 2023.
Carwow said it managed to ‘grow every revenue line’ across its business during the year and is ‘well on the way to building a profitable business’.
The firm’s auction website has now sold 160,000 cars worth a combined £3bn since it acquired Wizzle in 2021. The move into used car auctions has helped significantly turnaround its fortunes.
Carwow Limited submitted its accounts to Companies House today (Monday, September 30). They show that as of the end of 2023, the company’s profit and loss account was in the negative by £110m.
John Veichmanis, CEO of Carwow Group, said: ‘2023 marked a pivotal year for Carwow, as we significantly improved our financial performance and expanded our service offering.
‘Our performance last year and the first half of 2024 demonstrates the strength of our tech-first, full-service car changing model.
‘We’re making great progress on our journey to revolutionise how people buy, sell, and change their cars across Europe.’
As part of its growth, the group purchased Autovia Ltd in February 2024 in an all shares, no cash deal which saw consumer brands Auto Express, Evo and CarBuyer join its ranks.
‘We intend to utilise our content and commerce expertise to reposition [these] brands as bespoke digital car changing platforms for consumers and car manufacturers,’ said Veichmanis, in his notes on the accounts.
Carwow operates in the UK, Spain and Germany and wants to become the ‘online car changing destination for consumers’ for buying and leasing cars as well as consumers selling their old ones to dealers.
In July, the company secured an additional $52m (£38m) from Bessemer Venture Partners alongside existing investors Accel, Balderton, Episode 1 and Vitruvian.
Carwow said the new investment ‘validates’ its ‘unique’ business model and will help its ‘international expansion plans’. Carwow has also recently renegotiated its loan repayment terms to December 2027
The group still helps consumers change their cars and says 12 car brands operating agency sales have partnered with it to sell their cars directly to consumers through the website. It works with a number of others to help facilitate new car leads.
Carwow is well known for its YouTube channel – headed by Mat Watson – which is now the most watched car channel in the world with 8.8m subscribers as of the end of last year. The firm is investing in Spanish and German YouTube channels too.
Last week, the firm announced a new advertising campaign that would see it reach consumers via TV and radio adverts. The campaign will run until October 27.
As of the end of 2023, Carwow had 338 employees with an average salary of £65,000 per year. The highest paid director received £189,404.
