UK startup Motorway, connecting used car sellers to buyers via its online platform, has secured £48 million in a Series B round led by Index Ventures. New investors BMW i Ventures and Unbound along with existing investors Latitude and Marchmont Ventures have also joined the round. The funding will be used to extend its platform and further grow its 160 team. Motorway has raised a total of £62 million so far over 4 funding rounds.
Founded and based in London in 2017 by Alex Buttle, Harry Jones and Tom Leathes, Motorway connects sellers directly with dealers looking to acquire stock as well as allowing used car transactions to be made faster, easier and more cost-efficient. Their website allows customers to compare instant offers from over 3000 professional online car buyers and dealers, select their best offer whilst giving a sell fast option for up to £1000 more than any other way could bring.
“For half a century, inefficient offline processes have led to bad deals and a bad experience for both car sellers and car dealers.” said Tom Leathes, CEO of Motorway. “Motorway has fundamentally changed a broken experience where everyone ends up dissatisfied – and we’ve transformed it with a superior online experience where everybody wins. Cutting out the middlemen leaves both the consumer and car dealer with a better deal, all from home and without the stress. Our incredible growth so far is testament to our focus on delivering more value through technology – and this investment will provide us with the fuel to take Motorway to the next level.”
The company reports that £50 million in sales have occurred in May of this year alone. Motorway is witnessing over £2.5 million in transactions on a daily basis and completing more than 4,000 sales a month. Based on these figures, Motorway is projecting over £650 million in sales this year, a number that would triple its 2020 performance. It was also estimated that 5% of all Motorway’s car deals were sold online raising the price by an additional 8.2 per cent on used car prices.
Danny Rimer, Partner at Index Ventures, said: “We’re always looking to invest in companies that are truly disrupting an industry and meeting a real customer need. We have found that in Motorway. The team has built an incredibly powerful platform, underpinned by great technology and a deep understanding of the challenges both consumers and car dealers face. Motorway has quickly become the first port of call for tens of thousands of people selling their car.”
Source: Techcrunch “Motorway’s auction platform for second-hand cars raises $67.7M Series B led by Index Ventures”