Cazoo raises $630m to support UK, EU expansion

Online car retailer Cazoo has raised $630m to support its expansion in the UK and EU.

Cazoo said investors led by Viking Global will buy 2% convertible senior notes through a placement. These will then be turned into Class A ordinary shares and sold at an initial price of $5, which is a premium of around 20% to the trailing five-day volume-weighted average share price.

Existing shareholders including Mubadala Investment, D1 Capital and Willoughby Capital are also participating.

"Following the significant progress made since its launch two years ago, the additional capital will support Cazoo’s continued growth in the UK and expansion in Europe," it said.

"The financing will supplement Cazoo’s current strong liquidity position and will provide a material multi-year runway for the company to be able to execute on its strategy over the coming years."

Cazoo said the new proceeds, combined with its existing cash and cash equivalent position of around $260m as of the end of December 2021, will leave the group with a pro forma cash balance approaching $900m after the transaction.

Founder and chief executive Alex Chesterman said: "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."