ITV and Channel 4 are set to drive carwow’s exposure in a strategic media-for-equity deal struck part of the online car marketplace’s latest investment round.
Carwow has attracted £17.2m in new investment in its latest investment round, with existing investors including Vitruvian, Balderton and Accel, providing the majority of the equity investment alongside Hercules Capital which provided a £40m debt capital facility in December 2021.
News of the new investement comes just three months after carwow raised £41.5m to scale its Sell Your Car division after the used car stocking platform reported 600% revenue growth in just six months.
It also came as the business revealed that it had enabled £4.75bn of car sales in 2021 as annual group revenues rose 63% as its Sell Your Car service “kicks into gear”.
Carwow founder and chief executive, James Hind, said: “Having such strong growth in 2021, despite the huge issue the new car market is facing, is a testament to our talented, growing team and our ability to offer great new services to consumers and partners across our markets.
“Whilst we’re investing considerably in our Sell Your Car technology and team, our new media-for-equity deals will enable us over the coming years to tell even more people about how we can help them when it comes to changing cars.”
Hind added: “The digital revolution in automotive retail is bringing more customers to our brand and therefore our partners every day.
“Despite the delays in new car supply, £4.75 billion’ worth of vehicles were bought, sold or leased between our customers and partners last year - 77% more than in 2020.
“Lots of our strength in the new car market has been built on people making the switch to EV - where we out-perform industry averages.
“Since late 2021 we’ve seen real signs of confidence in new car sales - especially in Germany where monthly sales have been up over 100% compared to last year.”
Niko Waesche, fund manager of ITV AdVentures Invest, said: “We are delighted to be partnering with carwow.
“The team has demonstrated a deep understanding of both content and commerce, helping buyers and sellers across the UK, Spain and Germany.
“Carwow is the go-to household brand for objective and entertaining car reviews and this guidance is essential for consumers, particularly as many people transition to electric vehicles.”
Vinay Solanki, Head of Channel 4 Ventures said: “Working together with ITV AdVentures Invest for the first time, our combined media offering maximises the opportunity to significantly accelerate awareness of carwow’s new Sell Your Car service in the UK.”
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