Carspring has raised £5m from a funding round which included investment from Rocket Internet and Channel 4’s Commercial Growth Fund.
Carspring, the UK’s fastest growing online car sales platform, has raised £5m from a series B funding round which included investment from Rocket Internet and Channel 4’s Commercial Growth Fund.
The funding will be used to support Carspring's expansion into European markets as well as scaling up its UK operations.
The company’s successful closing of the funding round reflects Carspring’s development from a start-up to a significant player in used car sales.
Alexander Kudlich, managing director of Rocket Internet, said: "Used car sales is a multi-billion dollar industry, and with this latest investment, it’s going to be exciting to see Carspring take full advantage by expanding and developing its model, both in the UK, and across Europe."
One way in which Carspring will be able to gain greater media visibility in the UK in particular is through a significant media-for-equity deal - part of the Channel 4 Commercial Growth Fund. The head of the scheme is especially excited about the collaboration between the two entities.
Vinay Solanki, the head of Channel 4’s Growth Fund, explains the reasons behind his enthusiasm for the deal: “Carspring is a great addition to our Commercial Growth Fund investment portfolio.
"Our fund strategy looks for highly disruptive early stage companies like Carspring which solve consumer problems but are not able to access TV advertising in their growth stage without help.
"We’re looking forward to working with the talented team behind Carspring to get their first TV ad campaign on air and help them to unlock the significant growth potential of TV advertising.”
Carspring’s latest investment round also follows a significant increase in productivity. In 12 months, the company has increased its stock over 1,400%, from 200 cars, to well over 3,500.
With plans to continue this trend, Carspring is now looking to not only grow its share of the UK market but also to break into Europe. And with sales set to reach 4,000 cars in 2017, it’s clearly a model that’s winning the trust of both consumers and investors.
Co-founder of Carspring, Maximilian Vollenbroich, added: “After the exciting progress we’ve made so far this year, our latest funding puts us in a solid position to fully realise our potential.
"It’ll enable us to implement all the improvement ideas we have been working at, whilst also allowing us to build towards our vision of a completely customer-centric online journey for buying used cars, both in the UK, and Europe.
"We fully believe our model points the way to the future of car buying, and with our development experience, we’re going to be the go-to name for consumers Europe-wide.”