Carzam has raised £112m in funding to bolster its standing in the online used car market.
The business, founded by Big Motoring World CEO Peter Waddell and backed by former Cox Automotive boss John Bailey, says the cash injection will help it ‘keep pace with consumer demand’ and bring used cars to the market ‘faster’.
The pair are now joined by an unnamed US-registered global institutional investment management firm, and the injection marks Carzam’s first external fundraising round.
It comes as Carzam is on track to sell 13,500 cars and turn over £150m in its first full-year.
Carzam CEO Kirk O’Callaghan will now lead the business ‘through a period of rapid expansion’.
Announcing the funding, O’Callaghan said: ‘The appetite for investment in Carzam reflects the strength of its online car sales proposition.
‘We continue to grow our customer and remarketing services in preparation to increase our unit numbers exponentially.
‘The £112m will propel Carzam into its next chapter. The funding will support technology development, which is required to keep pace with consumer demand.
‘Buyers are hungry for a hassle-free purchase at a fixed price, with excellent aftercare and a moneyback guarantee. People want to browse from home and make their own choice – they don’t want to be sold to.’
He added: ‘This new investment will facilitate Carzam’s bold plans and cement us as a true industry challenger, bringing quality used cars to the market faster, in better condition and in much greater volume.’
Earlier this week, Carzam issued a notification on Companies House of the appointment of Andrew McCue to its board.
According to The Sunday Times, former Paddy Power chief executive McCue could be in line to take on the chairmanship.
The cash injection comes as rivals flex their muscles in the online used car market.
Cazoo competed an $8bn stock market float in the US with Spac, a special-purpose acquisition company, earlier this year.
Meanwhile, Constellation Group raised £1bn in funding in May 2021 to pump into Cinch.