London-based online car retailer Cazoo has acquired Spanish car subscription marketplace Swipcar in a €30m deal, following the decision to expand more into the European market.
“Swipcar has built a market-leading car subscription marketplace in Spain adding hundreds of new customers every month,” Alex Chesterman, Cazoo’s founder and chief executive said.
“This deal will enable us to accelerate our launch plans in Spain and Italy, offering consumers the option of buying, selling, financing or subscribing to a car entirely online.”
Cazoo acquired the Barcelona-based company for a mix of cash and shares, but the transaction is expected to have a minimum impact on Cazoo’s operating results for fiscal year 2021.
“Cazoo has a clear vision and strategy that is fully aligned with ours and we are looking forward to joining forces and accelerating the launch of Cazoo and the digital transformation of the car buying, selling and subscription experience in Spain and across Europe,” said Swipcar’s chief executive Julio Ribes.
In the last three months, the company has registered a growth in revenue of 267 per cent year-on-year, going up to £174.4m, while wholesale revenues increased 848 per cent following the launch of a direct buying channel.
“It is very clear that our proposition is resonating strongly with consumers and that the shift to online car buying is accelerating,” said Chesterman while commenting on the results.
“Looking forward to the remainder of the year, we continue to see very strong consumer demand in both our car buying and selling channels.”