Cazoo raises £25m in seed funding led by existing backers to scale operations ahead of launch
The round was led by dmg ventures, Stride, Octopus Ventures, and Entrée Capital to support team growth and operational expansion.
Cazoo operates an online platform for buying used cars with home delivery and collection options. The business acquires and reconditions vehicles for digital sale across the UK.
Cazoo has secured £25m in a seed funding round led by its existing backers, bringing its total funds raised to over £55m ahead of its planned commercial launch. The capital will be deployed to expand the workforce and scale marketing and operational capacity.
The business has grown rapidly since its inception, assembling a team of over 100 employees and establishing various partnerships across vehicle procurement, logistics, and financing within nine months. Founder Alex Chesterman, known for previous ventures such as LoveFilm and Zoopla, aims to modernise the £50bn domestic used car market.
Participants in the latest financing include dmg ventures, Stride, Octopus Ventures, and Entrée Capital. The fresh injection of capital is intended to support the company as it prepares to introduce its digital car buying service to consumers across the country.
From the founder
"We are delighted to have closed this further funding round, giving us significant firepower to fuel our growth after we launch later this year. We are assembling a world-class team and looking forward to transforming the used car market by delivering UK consumers the best car buying experience in terms of selection, value, quality and convenience."
Alex Chesterman
Founder at Cazoo
Investor perspective
"We are really impressed with the progress that Cazoo has made in such a short period of time. Alex’s passion for using technology to improve consumer experiences and his ability to execute are second to none. We are delighted to be backing Cazoo to deliver a wholly new and better approach to buying a used car and to disrupting this £50bn market."
Lord Rothermere
Chairman of DMGT, dmg ventures
Use of funds
- 01Grow the team
- 02Invest in sales and marketing
- 03Scale operations
