Online car retailer Cazoo has raised $630m from investors to fund its expansion into Europe, while the UK side of the business continues to grow.
Investors led by Viking Global will buy via a private placement 2 per cent convertible senior notes, which will then be turned into Class A ordinary shares and sold at an initial price of $5.
Existing shareholders such as Mubadala Investment, D1 Capital and Willoughby Capital feature among the funding’s backers.
“This transaction, where we have raised an additional $630 million, further reinforces the strong belief in Cazoo from new and existing shareholders who, like us, are extremely excited about the huge market opportunity that we have ahead of us,” said chief executive Alex Chesterman.
“We are now very well-funded for the coming years to continue to capitalise on this opportunity and deliver the best car buying and selling experience for consumers across the UK and Europe.”
In the last few months, Cazoo has expanded all over Europe, acquiring rival market places.
At the end of January the company signed an €80m deal with Italian competitor Brumbrum while two months prior it acquired Spain-based Swipcare.
“In 2021, our second full year of operation, we achieved record revenues of over £665 million and have made significant progress on all aspects of our ambitious strategy,” Chesterman added.
“We have built a market leading proposition which consumers love, a world-class team of over 4,000, a household brand that is now recognised by over 75 per cent of the UK population and significant infrastructure capabilities across the UK and EU.”