Inside Cazoo: One of the Largest and Fastest Growing Tech Start-ups in the UK
What if you could shop for a car the same way you buy groceries and other personal items. Go online, find the car of your choice, pay and have it delivered to your doorstep. That was the exact thought that Alex Chesterman had when he founded Cazoo. An easy enough idea that is now worth a billion dollars.
Cazoo became UK’s fastest-ever Unicorn company (a tech company worth $1bn) in June last year after raising £25million from investors including DMG Ventures, Draper Esprit, and General Catalyst. The company is only a little over a year old.
How Cazoo works is they buy used cars, recondition them before reselling them. Once a buyer identifies a car, Cazoo allows them to test it out for 7 days ad return it if it doesn’t meet their expectations.
That, together with the digitisation of the whole car buying process has been the key driving force for Cazoo’s success. The company made £160m in its first year of operation.
Cazoo has a panel of lenders that they work closely with to provide buyers with simple car finances in just a few minutes. They also accept part exchange where buyers give them their old cars and some extra cash in exchange for a reconditioned ride.
A quick skim through customer reviews on Trustpilot is all you need to understand just the type of company that Cazoo is.
Recent reports seem to suggest that the Cazoo is about to go public and could float with a valuation of around £5billion consequently raising its market value to £1.5billion. And while there has been no official confirmation about the issue from the company, they did not categorically deny the rumour.
Here is what a spokesman from Cazoo had to say. “As one of the UK's fastest-growing businesses, with revenues of over £160m in our first year alone, it is not surprising that there is speculation around whether or when we might IPO, but we do not comment on speculation and should we have an announcement to make on this or any other matter we shall do so at the appropriate time.”
If indeed the company goes public, one thing we will be interested to see is whether it gets listed on the London Stock Exchange. In the past, most high-profile tech companies have preferred to go with the New York Stock Exchange.