Carwow has raised £30 million from big name investors for its car sales site

pulse

July 31, 2017 10:02 AM

The investors have also backed companies like Facebook, Spotify, and Citymapper.

Carwow founders: CEO James Hind (right), creative director Alexandra Margolis (middle) and Chief Technology Officer David Santoro (left).

Online car marketplace Carwow has raised £30 million for its website, which tries to help people get the best price on a new car by introducing them to a range of dealers.

Total investment in the company, which allows prospective car buyers to search for vehicles by their make and model, now stands at £48 million.

The Series C funding round was led by Virtuvian Partners, while previous investors Accel Partners and Balderton Capital, who have backed companies like Facebook and Citymapper, also participated.

James Hind, Carwow cofounder and CEO, said in a statement that the funding will be used to improve the service for dealers and manufacturers. The money will also be used for marketing campaigns and to fuel international expansion, Carwow said.

Carwow launched in 2013 and the company claims that £2 billion of new cars have been bought over its platform. The company's website, which gets 2 million visits a month, tells people how much a particular car should cost and provides reviews as well.

The company, which employs 140 people at its head office in Holborn, London, launched in Germany last year and plans to expand into other markets with the help of the new funding. The company did not specify which countries it was looking at next.

Thomas Studd, a partner at Vitruvian Partners said in a statement: "It's clear to see the value that Carwow provides consumers who are looking to buy a new car but what also became evident during the investment process are the significant benefits that Carwow delivers to both its partner dealers and car manufacturers.

"Dealers are particularly enthusiastic as Carwow's highly qualified leads allow dealers to address the market much more efficiently — a third of all calls from Carwow consumers end in the sale of a car. We are delighted and excited to partner with Carwow and to help accelerate its international expansion and deepen its offering within the UK new car market."

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