Co-founder of Zoopla Alex Chesterman has raised the finance he needs to start a platform designed to disrupt the used car trade.
Chesterman has raised a seed round of around £30m from Stride.VC, dmg ventures, and Octopus Ventures, it is reported. It is thought Cazoo will allow customers to select and buy, rent or finance a used car. Then have it delivered direct within 48 days on a ‘money back if not delighted’ basis.
Chesterman says: “I’m delighted to announce this investment in my latest venture, Cazoo, and am very excited by the opportunity to transform the used car buying experience, which suffers from poor satisfaction and convenience and is failing to meet the needs of consumers. Buying a car should be no different to buying any other product online today.”
Although Cazoo sounds revolutionary there have already been a few portals which make it possible to buy a used car online. It’s fair to say most of them have failed to make much impact.
There is also massive competition for the used car buyer’s attention from the omnipotent FTSE-250 Autotrader Group’s portal which apparently has 93% consumer recognition and has left many competitors in its wake over the years.
Observers will no doubt be wondering just what surprises Chesterman has up his sleeve that could see Cazoo crack the market and become the used car equivalent of Zoopla.