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Cazoo has raised $630 million to support continued UK and Continental European expansion plans
Founded in 2018 and launched just a short two years ago, Cazoo’s timing couldn’t have been better and with the help of a staff of 3,800 across the UK, France, Germany, Spain, and Portugal. has seen over 50,000 cars pass through it’s (virtual) showroom doors.
The company has raised the capital through a 2 percent sale via convertible senior notes, that subsequently will convert to Class A ordinary shares at a price of $5.00 a pop.
This price represents a 20% premium to the trailing 5 trading day volume-weighted average price of the share.
The purchasing parties of said shares are led by Viking Global Investors with several existing shareholders including Mubadala Investment Company, D1 Capital, and Willoughby Capital all ponying up.
This raise, when combined with Cazoo’s existing cash and cash equivalent position of approximately $260 million as of December 31, 2021, will leave the company sitting pretty with a pro forma cash balance approaching $900 million.
Cazoo founder and CEO Alex Chesterman OBE commented, “This transaction, where we have raised an additional $630 million, further reinforces the strong belief in Cazoo from new and existing shareholders who, like us, are extremely excited about the huge market opportunity that we have ahead of us. We are now very well-funded for the coming years to continue to capitalise on this opportunity and deliver the best car buying and selling experience for consumers across the UK and Europe.”
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