Valued at $7 billion! Used car platform Cazoo to go public in the US

According to foreign media reports, the British used car platform Cazoo recently announced that it will conduct an initial public offering in New York and go public in the United States with a valuation of US$7 billion through a merger with the investment company (SPAC) AJAX I.

Cazoo to list in New York after raising $1.6 billion

Cazoo is expected to raise $1.6 billion in the transaction with AJAX I, including $805 million in cash trust from the SPAC and $800 million from private investors.

SPACS are "blank check" companies that are formed for the sole purpose of raising money for an initial public offering so that the target company can bypass the traditional initial public offering (IPO) process. They have become a hot investment tool on Wall Street.

Once the transaction is completed, London-based Cazoo will be listed on the New York Stock Exchange, and founder Ochel will continue to serve as Cazoo's CEO.

"This announcement is another important milestone in our continued efforts to transform the way people buy cars in Europe," Cazoo CEO Alex Chesterman said in a statement on Monday.

Cazoo leads the new trend of used cars in the $700 billion market

Cazoo was founded three years ago and is a used car platform based in the UK . The company sells and delivers its cars in the UK and continental Europe. Its competitors include Auto Trader , Carvana , etc.

Cazoo aims to fill an Amazon-like void in the auto industry. Online sales in the automotive sector account for a small portion of the overall global market, but are rising as e-commerce has gained momentum amid the pandemic. Cazoo expects revenue of more than $600 million and sales of nearly $1 billion in the first quarter of 2021, a three-fold increase year-over-year.

It is reported that the used car market in Europe is worth $700 billion , of which only 2% of sales are conducted online. Many online used car platforms have grown rapidly in the past year as the pandemic has driven the used car online market. Carvana has a similar model to Cazoo, and its stock price has risen fivefold in the past 12 months , with investors viewing it as the " Amazon of the automotive industry . "

Chief Executive Alex said revenue is expected to double annually through 2024, to $ 8 billion , thanks to its expansion into Europe , a larger inventory of cars and new services.

U.K.

Listing

Cazoo