Motorway’s auction platform for second-hand cars raises $67.7M Series B led by Index Ventures – TechCrunch


Motorway, is a UK startup that enables skilled automotive sellers to bid in an public sale for privately-owned vehicles on the market. The startup has had fast success by eradicating plenty of friction within the course of. It’s now raised £48m / $67.7m in a Collection B spherical led by Index Ventures, together with new traders BMW i Ventures and Unbound. Present traders Latitude and Marchmont Ventures additionally participated. The funding will probably be used to increase its platform and develop the present 160-strong group.

The startup permits shoppers to promote their automotive for as much as £1,000, by importing its particulars through a smartphone. Over 3,000 skilled automotive sellers then bid for the car in a every day on-line public sale. The very best supply wins the automotive, which is then collected free of charge by the successful supplier inside 24 hours. 

Motorway says it has offered 65,000 vehicles since its launch in 2017 and seen gross sales hit £50m in Could 2021 alone, £2.5m of transactions a day, and greater than 4,000 accomplished automotive gross sales a month. With solely 5% of all autos within the UK offered on-line proper now, there’s loads of headroom for this market to develop.
 
Tom Leathes, CEO of Motorway, stated: “For half a century, inefficient offline processes have led to dangerous offers and a nasty expertise for each automotive sellers and automotive sellers. Motorway has basically modified a damaged expertise the place everybody finally ends up dissatisfied – and we’ve reworked it with a superior on-line expertise the place everyone wins. Slicing out the middlemen leaves each the patron and automotive supplier with a greater deal, all from house and with out the stress. Our unbelievable development thus far is testomony to our concentrate on delivering extra worth by means of expertise – and this funding will present us with the gasoline to take Motorway to the following degree.”
 
Danny Rimer, Companion at Index Ventures, stated: “We’re all the time seeking to put money into firms which might be really disrupting an trade and assembly an actual buyer want. We’ve discovered that in Motorway. The group has constructed an extremely highly effective platform, underpinned by nice expertise and a deep understanding of the challenges each shoppers and automotive sellers face. Motorway has rapidly turn into the primary port of name for tens of 1000’s of individuals promoting their automotive.” 
 
Motorway beforehand raised £14m in enterprise funding because it was based by Tom Leathes, Harry Jones and Alex Buttle in 2017.

Talking to me over interview Leathes added: “COVID has been an actual accelerator of one thing that was already occurring. The automotive trade is transferring on-line and that’s partly about individuals shopping for their subsequent automotive on-line, however it’s additionally about sellers altering their habits, how they do enterprise, the place they purchase their vehicles. It pressured that change which they resisted for a very long time, and now they’re embracing it, so it’s a basic shift within the trade. And this is the reason we see such a large alternative to offer the rails to assist either side of {the marketplace} to maneuver on-line.”

Rimer added: “It’s uncommon that you’ve founders who’ve labored collectively throughout a number of profitable and fewer profitable startups who’ve that scar tissue and success, and at the moment are going for a a lot larger alternative. The enterprise mannequin is actually an essential one for us as a result of as an alternative of proudly owning stock after which having to do away with your stock, kind of just like the distinction between Nat-a-Porter and Farfetch. Motorway’s market is rather like Farfetch – they don’t have any stock, which implies that simply by merely making that platform occur for consumers and sellers, they win. So there’s rather a lot much less threat related to what the cash goes for use for when constructing the enterprise.”



Supply hyperlink