Carzam has raised Â£ 112million to strengthen its position in the online used car market.
The company, founded by Peter Waddell, CEO of Big Motoring World and backed by former Cox Automotive boss John Bailey, said the cash injection would help it “keep pace with consumer demand.” and getting used cars to market âfasterâ.
The pair are now joined by a global institutional investment management firm registered in the United States, and the injection marks Carzam’s first external fundraiser.
It comes as Carzam is on track to sell 13,500 cars and generate Â£ 150million in its first full year.
Carzam CEO Kirk O’Callaghan will now lead the company “through a period of rapid expansion”.
Announcing the funding, O’Callaghan said, âThe appetite for investing in Carzam reflects the strength of its online car sales proposition.
âWe continue to develop our customer and remarketing services with a view to increasing the number of units exponentially.
âThe Â£ 112million will propel Carzam into its next chapter. The funding will support technological development, which is necessary to keep pace with consumer demand.
âBuyers are looking for a hassle-free purchase at a fixed price, with great tracking and a money-back guarantee. People want to browse from home and make their own choice – they don’t want to be sold. ‘
He added: “This new investment will facilitate Carzam’s bold plans and cement us as a true challenger to the industry, bringing quality used cars to market faster, in better condition and in much larger sizes. volume.”
Earlier this week, Carzam posted a notification on Companies House of the appointment of Andrew McCue to its board of directors.
Former Paddy Power chief executive McCue may be in the running for the presidency, according to the Sunday Times.
The cash injection comes as competitors are vigilant in the online used car market.
Cazoo participated in a US $ 8 billion stock float with Spac, a special purpose acquisition company, earlier this year.
Meanwhile, the Constellation group raised Â£ 1bn in funding in May 2021 to inject into Cinch.
In September it was rumored that Cinch was about to splash Â£ 500 million for the acquisition of Motorpoint, while on Friday (November 26), the company was suspected of being interested in purchasing Marshall Motor Holdings.
Used car dealership Carzam launches We Buy Any Car style shopping service