Online car sales business Carzam has raised £112 million in funding to support its growth.
The start-up, which launched in December 2020, expects revenues to be close to £150 million for its first year of trading, equating to 13,500 sales of used cars through its website.
John Bailey, Carzam co-founder and former president of Cox Automotive, said: “This is a pivotal moment in Carzam’s history. To attract investment at this scale just months after our launch is a huge achievement and is recognition of our rapid growth.”
Carzam sources and prepares used cars, which can be delivered in as little as 24 hours from order to the buyer’s home or to a Carzam collection centre. Vehicles can be returned within 14 days if the customer isn’t completely satisfied.
Carzam CEO Kirk O’Callaghan (pictured) will now lead the business through a period of rapid expansion.
He said: “The appetite for investment in Carzam reflects the strength of its online car sales proposition. We continue to grow our customer and remarketing services in preparation to increase our unit numbers exponentially.
“The £112 million will propel Carzam into its next chapter. The funding will support technology development, which is required to keep pace with consumer demand.
“Buyers are hungry for a hassle-free purchase at a fixed price, with excellent aftercare and a moneyback guarantee. People want to browse from home and make their own choice – they don’t want to be sold to.
“This new investment will facilitate Carzam’s bold plans and cement us as a true industry challenger, bringing quality used cars to the market faster, in better condition and in much greater volume.”
Since its launch, Carzam has assembled a management team of industry experts who bring with them a wealth of experience. Following Kirk O’Callaghan’s arrival from Sytner’s Carshop, James Buxton left Audi to become Carzam’s chief commercial officer.
Former CEO and CFO at Cox Automotive UK, Michael Buxton, was one of the first senior appointments, becoming CFO, and Ashley Wade joined from Renault as chief marketing officer.
The most recent addition to the Carzam team was Dave Palmer, formerly of Sytner’s Carshop, who became chief vehicle preparation officer in August. He is responsible for overseeing Carzam’s preparation process and standards as transactions and stock levels accelerate.