Carwow, a marketplace for new cars, has secured €28 million in funding. The financing round is led by strategic investors from the automotive sector..
The British startup Carwow was founded in London in 2013 and has been working on the German market since 2016 from MunichCustomers can individually configure their new car via the platform and then receive offers from various dealers. The comparison platform has now announced a strategic financing round with Daimler as the lead investor. Several German car dealers are also investing in the startup, as are existing investors, including Balderton Capital, Accel, and Vitruvian Partners. The existing investors had already pumped €33.5 million into the comparison portal in 2017.
Rob Moffat, partner at existing investor Balderton Capital, says:
“The investment by one of the world's leading car manufacturers demonstrates the strategically important role Carwow plays in online car sales in Europe.”
With the new investments, the startup aims to accelerate its growth in Germany, Great Britain and Spain. Philipp Sayler von Amende, CEO and co-founder of Carwow Germany, his company stands for transparency in the purchasing process. He says:
“Now, the inventor of the automobile and several car dealers are investing to advance this transparency and accelerate Carwow’s growth.”
With more horsepower, Carwow wants to further digitize the car trade
The digital transformation has now arrived in the car trade, says the German Carwow managing director:
“This clearly demonstrates the radical change in the perspective of the automotive trade: Digitalization is recognized as an opportunity to offer customers a unique digital purchasing experience.”
The financial injection will be used for marketing, employees, and product development, thus accelerating growth. For example, the startup is expanding its Product portfolio about stock vehicles, annual cars, leasing and products from suppliers.
The comparison platform is enjoying great demand in Germany: Since its launch in 2016, the portal has sold cars worth €600 million in this country. In the UK, one in twenty customers already buys their new car through the platform. According to Carwow, customers save an average of €5,900. The portal also boasts unbiased reviews, comparability of offers, and the selection of the right dealer—as well as complete transparency. However, the extent to which the strategic investment of various car dealers influences the final offer for the customer remains questionable.
