Finance:Carwow

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Carwow
White logo 250 crop.png
Type of businessPrivate
Founded2013 (2013)
HeadquartersLondon, United Kingdom
Area servedUK
OwnerBalderton Capital, Episode 1 Ventures
Founder(s)James Hind, Alexandra Margolis, David Santoro
IndustryInternet
Current statusActive

Carwow, stylised as carwow, is a platform for buying new cars from franchise dealers. It uses the reverse marketplace model to remove the need for buyers to negotiate with car sellers - users choose the car they would like to buy, along with the various specifications and features, then receive offers direct from dealers.[1] It also provides information to prospective purchasers and gives feedback on rogue dealers and they also review cars via their YouTube page.[2]

The site is free to use and reportedly provides an average saving of £3,600 for the consumer.[3] Dealers pay carwow to sell cars via the platform. The company claims to be completely unique in Europe and plans to expand into the continent into commercial vehicles, used cars and vans.[4] The company has partnered with the RAC as part of RAC Cars' ‘search, buy, sell’ website.[5]

carwow was founded by James Hind and launched in May 2013. The company's investors include venture firms Balderton Capital, Episode 1 Ventures, Samos Investments and Accel Partners.[6] The company had sold over 20,000 cars valued at £550m by January 2016.[7]

History

The company originally launched in 2010 as car research site carbuzz. It offered aggregated expert reviews, user reviews, statistics, videos and images to help consumers looking to purchase a new car find the best vehicle for their taste, budget and requirements.[8]

The team realised that consumers were missing a quick and easy way to compare dealers' prices on new cars, instead having to spend hours travelling round and negotiating with multiple dealers.[9] In May 2013 it re-launched as a car buying platform. The company then raised £1.3m venture capital finance from Balderton Capital, Episode 1 Ventures and Samos Investments, as well as a number of angel investors including Alex Chesterman and Simon Murdoch, in February 2014 to fund growth.[10]

Its investors provided a further £4.6m of capital in so the company could 'expand the team further, roll out above-the-line advertising campaigns and start exploring new markets'.[11]

In January 2016, carwow raised a further £12.5m in a Series B funding round led by Accel Partners.[12]

A £6m TV advertising campaign for carwow was launched in December 2015, voiced by actor Michael Gambon.[13]

As of January 2016, carwow has one million users.[7]

References

  1. ↑ "Can you save money buying a new car online through CarWow?". http://home.bt.com/lifestyle/money/money-tips/can-you-save-money-buying-a-new-car-online-through-carwow-11364033061241. 
  2. ↑ "Zoopla for cars: property site bosses back start-up carwow". https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10656157/Zoopla-for-cars-property-site-bosses-back-start-up-carwow.html. 
  3. ↑ "Carwow celebrates one million users ahead of CDX16 - Car Dealer Magazine" (in en-US). http://cardealermagazine.co.uk/publish/carwow-celebrates-one-million-users-ahead-of-cdx16/105854. 
  4. ↑ "Top new businesses of 2014: carwow - Startups.co.uk: Starting a business advice and business ideas". http://startups.co.uk/top-new-businesses-of-2014-carwow/. 
  5. ↑ "Carwow and RAC partner to offer innovative new car-buying experience - Car Dealer Magazine" (in en-US). http://cardealermagazine.co.uk/publish/carwow-rac-partner-offer-innovative-new-car-buying-experience/92494. 
  6. ↑ O'Hear, Steve. "Car Buying Platform Carwow Raises £12.5M Series B Led by Accel". https://techcrunch.com/2016/01/13/the-series-b-stop/. 
  7. ↑ 7.0 7.1 "carwow celebrates one million users and £550m worth of cars sold - Startups 100 by Startups.co.uk: Start up a successful business". http://startups.co.uk/startups-100/news/carwow-celebrates-one-million-users-and-550m-worth-of-cars-sold/. 
  8. ↑ Love, Martin (2010-11-27). "Car review: Porsche Cayenne S Hybrid" (in en-GB). The Guardian. ISSN 0261-3077. https://www.theguardian.com/technology/2010/nov/28/porsche-cayenne-s-hybrid-car-test. 
  9. ↑ "This Chap Raised Millions By Helping People Choose The Right Car". http://www.huffingtonpost.co.uk/2015/01/11/young-entrepreneur-carwow-james-hind_n_6436064.html. 
  10. ↑ O'Hear, Steve. "Balderton Capital Leads £1.3M Seed In UK Car Buying Platform Carwow". https://techcrunch.com/2014/02/23/carwow/. 
  11. ↑ O'Hear, Steve. "Car Buying Platform Carwow Secures £4.6M Series A To Step On The Gas". https://techcrunch.com/2014/12/14/carwow-fuel-injection/. 
  12. ↑ "London startup Carwow has raised £12.5 million from the investors behind Dropbox and Spotify". http://uk.businessinsider.com/london-tech-startup-carwow-has-raised-125-million-2016-1. 
  13. ↑ "Michael Gambon to become the voice of Carwow". http://www.am-online.com/news/digital-marketing/2015/12/18/michael-gambon-to-become-the-voice-of-carwow. 

External links




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