Tuesday 18 May 2021 12:16 pm

Used car firm Cazoo sees revenue surge fivefold

Used car firm Cazoo today said that its revenue grew nearly fivefold in the first quarter as the online dealership continues its rapid expansion.

The company, which was set up in 2018, said that revenue in the first period was £113.9m, compared with £19.6m last year.

The increase is the result of the firm selling 9,762 cars in the quarter, 373 per cent more than a year ago.

Gross profit came in at £3.5m, up from just £500,000 in the prior period.

Cazoo recently announced that it would go public in the US by merging with blank cheque firm Ajax I, a deal which values the start-up at $7bn.

The deal was a major blow to the City, with reports that the London Stock Exchange had pushed hard for Cazoo to list at home.

The firm is the latest effort from serial entrepreneur Alex Chesterman, the investor behind property site Zoopla.

Commenting on today’s results, Chesterman said: “In Q1 we continued our rapid growth trajectory, delivering record revenue growth of almost 500 per cent year-on-year, demonstrating the strength of our marketleading brand and fully-integrated platform in the UK, which we intend to replicate across Europe.

“Since the end of the period our growth has continued to accelerate, with the sale of our 25,000th retail vehicle this month. We continue to see improvements to GPU and remain on track to achieve revenues approaching $1bn in 2021.”