Carwow has secured backing from one of the world’s largest venture capital firms in a funding round valuing the company at $320m (£250m).
Bessemer Venture Partners, which has its headquarters in San Francisco, has put its weight behind the London-based online vehicle marketplace, according reports first published in the Sunday Times.
One of the oldest venture capital firms in the world, Bessemer was founded in 1911 by the American entrepreneur Henry Phipps Jr, who had seperately helped set up Carnegie Steel. The investment group’s portfolio includes the likes of LinkedIn, Pinterest and the online streaming platform Twitch.
Existing Carwow shareholders, including Balderton Capital, Accel, Episode 1 and Vitruvian, have also joined in a funding round of $52m.
In a statement, Carwow Group chief executive John Veichmanis said: “This is yet another milestone for Carwow.
“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 .”
Founded in 2013, Carwow uses a so-called reverse marketplace model, which removes the need for customers to neogitate with dealers when buying or selling a car. By 2016, it had reached a valuation of £550m.
Carwow acquired the print and digital media company Autovia, which owns brands including Auto Express, Drivingelectric and Carbuyer, for an undisclosed sum in February. The deal aimed to extend its reach, with the firm’s Youtube channel already reaching over 1bn views in 2023.
Despite the growth, Carwow has struggled in recent years amid the fallout from the Ukraine war and falling consumer confidence. It reported a post-tax loss of £29.4m in 2022, an increase of 121 per cent year-on-year.
However, sales have risen 56 per cent in the first half of 2024 and boss Veichmanis said the company is now at break even, the Sunday Times reported.