Carwow has raised $ 55million (£ 41.5million) to bolster its ‘Sell Your Car’ service just six months after the product launched.
Since its launch – following the online marketplace’s acquisition of Wizzle in June – Sell Your Car has become one of the main sources of used car inventory for the UK auto trade, according to the society.
On average, 900 cars are listed on the platform each day, with dealerships being encouraged to bid on the cars directly from consumers.
The success led to new investments, in the form of risky debt from Hercules Capital.
It follows a year of strong performance in the rest of the Carwow business, which saw revenue increase 60 percent year over year.
Since its launch, Sell Your Car’s monthly revenue has increased by approximately 600%.
Carwow now plans to invest in technology and platform development, international expansion and user growth.
Over 150 positions within the Sell Your Car division will be created over the next 12 months, adding to the existing team of 350.
James Hind, Founder and CEO of Carwow, said: “We are extremely pleased with how quickly our users and commercial buyers have been able to sell your car, proving the value of a unified digital buying and selling experience. .
“The size of our customer base and the reach of our brand provide us with an important platform for a growth advantage, but this latest investment will help strengthen our service and experience on all fronts.
“In just three months we hit our first goal of 7,000 live listings and helped sell £ 200million cars in the first six months.
“It was all done so quickly by simply leveraging what already exists within carwow; our huge reach through content, our great relationship with resellers and our in-house technology.
“We now plan to use a portion of the additional funding to advertise Sell Your Car to all car owners.
“With excellent results and learning in the UK, we started testing in Germany. Ultimately our goals are global, as is the rest of the carwow business. ‘
Steve Kuo, Partner at Hercules Capital, added: “We are delighted to provide this growth capital to carwow as they look to continue to rapidly develop their Sell Your Car division in Europe and further expand their target market.
Sell Your Car works by putting consumers up for sale by taking photos and inviting dealers to bid and buy it directly from them.
All offers include the cost of picking up the vehicle.
Hind added, “While this investment is focused on selling your car, our rapidly growing team also achieved a banner year for our new car business.
“We have dominated the electric vehicle switchover market, with over 30% of sales now fully electric, and have captured the huge demand from consumers to find the best route to buy a new car and sell an old one. “
James Hind recently appeared on the Auto Dealers Podcast and spoke about the company’s challenges in sourcing new cars. You can listen to the episode on Spotify here.