The company will be using these new funds to help growth their reach throughout the United Kingdom, Spain, and Germany. They'll accomplish this by hiring new employees, investing in new products, and pushing their marketing effort.
Carwow's platform aims to help consumers as they purchase their new car by offering lots of information and reviews, being clear about their auto prices, and providing ratings for all of the platform's dealerships.
Since launch, the platform has sold over £5 billion worth of cars which is around 5% of the UK's entire auto market.
Carwow started up in 2016 in Germany and has seen continual growth and currently the company is responsible for around 1.5% of new cars sold. Their efforts within Spain, which began about a year ago, is already expecting to reach sales worth around €200 million by the end of the year.
Previous investors Accel, Balderton Capital, Vitruvian Partners all choose to invest more into the platform. With their investment, Daimler will be putting Axel Harries onto Carwow's Board of Directors.
This round of investment is the first time that Carwow has brought aboard strategic investors.
“When Carwow was founded, there was a view from the industry that there might be some resistance for a model that leveled the playing field for consumers and dealers,” said Founder and CEO of Carwow, James Hind. “Having one of the world’s leading car manufacturers investing in the future growth and success of our business is a real proof point that this is a solution that works.
“This demonstrates that the industry perspective is shifting to what we anticipated when we launched, not only that the car purchasing journey was primed to move into the digital era, but that dealers and manufacturers can greatly reap the benefits of more informed and empowered customers.”
Rob Moffat, Partner at Balderton Capital, added: “We are delighted to bring Daimler on board at Carwow, alongside further investment from Balderton, Accel and Vitruvian. This investment from one of the leading global car manufacturers demonstrates how strategically important Carwow is becoming for online car sales across Europe.”