London-based Carwow Group, which includes the Carwow online marketplace Auto Express, evo, Driving Electric and Carbuyer, has raised $52 million in a new funding round.
The round was led by global venture capital firm Bessemer Venture Partners (which invested in Qogita and Upvest). Bessemer has a diverse range of companies in its investment portfolio, including LinkedIn and Shopify.
It was joined by a number of Carwow’s existing investors, including Accel, Balderton (invested in trawa and Qargo), Episode 1 and Vitruvian.
Funds utilisation
The latest investment will be used to supercharge Carwow’s strategic growth plans, including further scaling and expanding the SMC (Sell My Car) service in the UK to attract more customers and source more cars for its dealer partners. It will also look to introduce the SMC service to its German operation in 2025.
The company claims to have witnessed stellar growth in H1 with a 56% increase in revenue as more consumers move online to change their cars. In the next few months, it will expand its product and engineering teams to support this next phase of growth.
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 9 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.”
What does Carwow do?
Carwow was co-founded by James Hind, Alexandra Margolis, and David Santoro and launched in May 2013. It aims to create the ultimate online car buying and selling experience. It helps users find new car deals, compare offers, and buy directly from trusted dealers.
In 2021, the UK company launched its SMC feature after acquiring Wizzle. It allows users to compare offers from dealers for their old cars.
Initially founded as a car review aggregator, Carwow has grown into a popular name in the market with its automotive YouTube channel with over 9.4 million subscribers. Its online content includes unbiased reviews, car-buying news, advice, and interactive tools.
Currently, the company supports the car industry with data-driven tools and services, such as lead generation, stock sourcing, brand building, e-commerce training, marketing, and advertising.
Since its inception, over 10 million customers have used Carwow to buy and sell cars. Last year, nearly £3 billion worth of cars were bought through the platform, and £1.8 billion worth of cars were listed for sale through its SMC service.
Carwow CEO John Veichmanis described the new investment as another milestone moment for the group. He said: “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. 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.”
What do we think about Carwow?
The company is set to revolutionise the car-buying and selling experience across Europe with its user-friendly platform and extensive dealer partnerships. Its focus on integrating advanced technologies and data-driven tools will streamline car transactions for consumers and dealers alike.
By expanding its “Sell My Car” service and enhancing its product offerings, Carwow is positioned to become a dominant player in the automotive market, facilitating seamless car changes and driving significant growth in the industry.
