London-based Carwow Group, which operates the Carwow online marketplace along with Auto Express, evo, Driving Electric, and Carbuyer, has raised €47.7 million ($52 million) in a new funding round. The investment, led by Bessemer Venture Partners, aims to support Carwow’s expansion in the UK, Germany, and Spain. Other participants in the round include existing investors Accel, Balderton, Episode 1, and Vitruvian.
The fresh capital will be utilized to scale Carwow’s “Sell My Car” (SMC) service in the UK, improving customer acquisition and vehicle sourcing for dealer partners. Additionally, the company plans to introduce the SMC service to its German operations by 2025. The investment will also enhance payment processes and develop Carwow’s transport offerings.
John Veichmanis, CEO of Carwow Group, highlighted the company’s progress: “Over the last three years, we’ve developed a comprehensive car-changing proposition in the UK. This new funding allows us to expand our successful model to Germany and Spain, while continuing to innovate and support our dealer partners.”
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Market Impact and Future Plans
The UK-based startup has seen significant growth, with a 56% increase in revenue in the first half of the year as more consumers shift to online car purchasing. The company plans to expand its product and engineering teams to support this growth phase. Veichmanis added, “We’re excited to use this new funding to further enhance our proposition and continue investing in technologies that streamline the car buying and selling process for our users.”
About the Startup
Founded in 2013, they team around John Veichmanis offers an online platform for buying new cars and selling old ones, providing users with the ability to compare deals from trusted dealers. The company has also grown its media presence with a popular automotive YouTube channel, which boasts over 9.4 million subscribers. Carwow supports the automotive industry with data-driven tools and services, including lead generation, stock sourcing, brand building, e-commerce training, marketing, and advertising.
Since its inception, over 10 million customers have used the marketplace to buy and sell cars, with nearly £3 billion worth of cars bought through the platform last year. The SMC service has listed £1.8 billion worth of cars for sale.
With this substantial investment, the company from London is poised to expand its services and solidify its position as a leading online car marketplace in Europe.
