Carwow Secures $52M in Funding to Expand European Market Presence

London-based Carwow Group, known for its online car marketplace and automotive media platforms like Auto Express, evo, Driving Electric, and Carbuyer, has announced the successful closing of a new funding round, raising $52M (approximately €47.77M). This fresh capital infusion is aimed at bolstering Carwow’s growth initiatives in the UK, Germany, and Spain.

The funding round was led by Bessemer Venture Partners, a global venture capital firm with a portfolio that includes prominent companies such as LinkedIn and Shopify. Other notable participants in the round included existing investors Accel, Balderton, Episode 1, and Vitruvian. Alex Ferrara, a partner at Bessemer Venture Partners, commented on the investment, saying, “I’ve been a fan of Carwow’s videos and content for years. Like millions of others, I love their information-rich, impartial car reviews and drag races that make for fun and irreverent entertainment.”

Ferrara also highlighted the strategic value of Carwow’s consumer offerings: “Carwow’s consumer proposition is just as exciting, which is helping make car changing simpler for consumers across Europe – and with over 9 million car changes a year alone in the UK, we’re looking forward to supporting the Management team in growing the business and delivering on its true potential.” He added that Carwow’s focus on leveraging its content expertise and extensive footprint to drive its commerce services through dealer partnerships makes it a unique and compelling player in the market.

The investment, which was advised by Arma Partners, will be directed towards accelerating Carwow’s strategic growth plans. These plans include scaling and expanding the “Sell My Car” (SMC) service in the UK to attract more customers and source more cars for dealer partners. Additionally, Carwow aims to enhance payment processes and develop its transport offering. The company also plans to introduce the SMC service to its German operation in 2025.

Carwow has reported “stellar growth” in the first half of the year, with a 56% increase in revenue as more consumers turn to online platforms for their car changing needs. To support this next phase of growth, Carwow will expand its product and engineering teams in the coming months.

John Veichmanis, CEO of the Carwow Group, described this investment as another milestone for the company. “Over the course of the last three years, we’ve worked tirelessly to develop our car-changing proposition in the UK, giving consumers access to thousands of partners that can help them buy a new car and sell their old one.” Veichmanis emphasized the value customers find in the broad range of choices and the convenience of managing every step of their car-changing journey online. He noted that partners rely on Carwow to help drive new car sales and source stock.

Given the positive response to Carwow’s strategic blueprint in the UK, Veichmanis expressed excitement about using the new funding to extend their proposition to their existing businesses in Germany and Spain. He added, “We’ll also continue to invest in new technologies to help our partners seamlessly appraise, buy, and collect cars directly from the millions that use Carwow every month.”

Founded in 2013, Carwow has aimed to create the ultimate online car buying and selling experience. The platform helps users find new car deals, compare offers, and buy directly from trusted dealers. In 2021, Carwow launched its “sell your car” feature after acquiring Wizzle, enabling users to compare offers from dealers for their old cars. Initially a car review aggregator, Carwow has grown into a major name in car media, boasting a popular automotive YouTube channel with over 9.4 million subscribers. Its online content includes unbiased reviews, car-buying news, advice, and interactive tools.

Carwow supports the automotive industry with data-driven tools and services, including lead generation, stock sourcing, brand building, e-commerce training, marketing, and advertising. Since its inception, over 10 million customers have used Carwow to buy and sell cars. Last year, nearly £3B worth of cars were bought through the platform, and £1.8B worth of cars were listed for sale through its SMC service.