Total amount raised
$235.7 Millions
Latest funding date
Location
Carwow has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform offers a comprehensive suite of services for buying, selling, and leasing cars.
Keep reading to explore the intricacies of Carwow's fundraising journey and the investors backing this innovative platform.
What Is Carwow?
Carwow, founded in 2013, is an online car marketplace based in London, England. The company connects customers with automotive brands and car dealers, aiming to streamline the car buying process.
Founded by Alexandra Margolis, David Santoro, and James Hind, Carwow offers a range of services including new and used car buying, car selling, and leasing options. The platform ensures a hassle-free experience with no haggling and no fees.
With a team of 101-250 employees, Carwow continues to innovate in the automotive industry, providing efficient and cost-effective solutions for both consumers and dealers.
How Much Funding Has Carwow Raised?
- Series B
- Amount Raised: £12.5M
- Date: January 2016
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's features.
- Series C
- Amount Raised: $39M
- Date: July 2017
- Lead Investors: Vitruvian Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and improve technological infrastructure.
- Corporate Round
- Amount Raised: £25M
- Date: August 2019
- Lead Investors: Mercedes-Benz Group AG
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen partnerships with automotive brands and enhance service offerings.
- Equity Crowdfunding
- Amount Raised: £4.9M
- Date: October 2019
- Lead Investors: -
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To engage the community and raise funds for further development.
- Debt Financing
- Amount Raised: £41.3M
- Date: December 2021
- Lead Investors: Hercules Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational costs and expand the business model.
- Venture Round
- Amount Raised: £17.2M
- Date: March 2022
- Lead Investors: Hercules Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the platform's capabilities and expand market presence.
- Venture Round
- Amount Raised: -
- Date: April 2022
- Lead Investors: Volvo Cars Tech Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To foster innovation and develop new automotive technologies.
- Equity Crowdfunding
- Amount Raised: £2.8M
- Date: November 2023
- Lead Investors: -
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To engage the community and secure additional funds for growth.
- Venture Round
- Amount Raised: $52M
- Date: July 2024
- Lead Investors: Bessemer Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the "Sell My Car" service in the UK and Germany.
Total amount raised: $156.7M
Current valuation: Not publicly disclosed
Key Investors
- Bessemer Venture Partners
- Details: Bessemer Venture Partners is a global venture capital firm that invests in technology companies. They have a long history of backing innovative startups and helping them scale.
- Investment Focus Areas: Technology, healthcare, financial services, consumer sectors.
- Notable Investments: LinkedIn, Shopify.
- Accel
- Details: Accel is a venture capital firm that focuses on early and growth-stage technology companies. They have a strong track record of investing in successful tech startups.
- Investment Focus Areas: Early and growth-stage technology companies.
- Notable Investments: Facebook, Dropbox, Slack.
- Balderton Capital
- Details: Balderton Capital is a venture capital firm that invests in early-stage technology companies in Europe. They are known for their hands-on approach and deep industry expertise.
- Investment Focus Areas: Early-stage technology companies in Europe.
- Notable Investments: Revolut, Citymapper, The Hut Group.
- Episode 1
- Details: Episode 1 is a venture capital firm that invests in early-stage technology companies in the UK. They focus on supporting startups with high growth potential.
- Investment Focus Areas: Early-stage technology companies in the UK.
- Notable Investments: Zoopla, Shazam.
- Vitruvian Partners
- Details: Vitruvian Partners is a private equity firm that invests in high-growth companies. They focus on dynamic situations, including growth buyouts and growth capital investments.
- Investment Focus Areas: Growth capital and buyout investments in technology, healthcare, financial services.
- Notable Investments: Just Eat, Skyscanner.
What's Next for Carwow?
Carwow's future looks promising with significant opportunities on the horizon. The company plans to expand its "Sell My Car" service in the UK and introduce it to the German market by 2025. This move is expected to tap into a market where over nine million car changes occur annually. Additionally, Carwow aims to enhance its presence in Germany and Spain, leveraging the recent $52 million investment to attract more customers and expand its dealership network.
Given the successful fundraising round led by Bessemer Venture Partners, Carwow is well-positioned for future fundraising opportunities. The involvement of prominent investors like Accel and Balderton suggests continued support for further expansion and technological advancements. However, Carwow may face challenges such as competition from other online car marketplaces and traditional dealerships, as well as regulatory hurdles in new regions like Germany. Ensuring seamless integration of new technologies and services will be crucial for maintaining its growth trajectory.
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