Second-hand car auction platform Motorway hits Unicorn status after $190M raise with Index, ICONIQ

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It was only in June that Motorway – a UK platform on which professional car dealers can bid at auctions of privately owned cars for sale – raised $67.7 million in a Series B round. It has now raised a $190m Series C funding round led by Index Ventures and ICONIQ Growth, a leading Silicon Valley technology development investment firm. Existing investors Latitude, Unbound and BMW i Ventures also participated in the round. The startup is now claiming a valuation of over $1bn.

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One reason for this is the impact of the COVID pandemic on supply chains. The price of used cars has skyrocketed as fewer new cars are being made due to a lack of supply of computer chips and other essential equipment from China.

Consumers on the motorway can sell their car through a smartphone app that also uses computer vision to assess the condition of the car. The cars are then bid up by professional car dealers in daily online auctions, with the car being collected by the winning dealer for free within 24 hours. Given that it is a “contactless” process, dealers and car owners are increasingly seeking to buy and sell cars online.

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Motorway says it now has a network of 4,000 professional car dealers using the platform and claims it has delivered a 300% increase in third-quarter sales to $411 million compared to $105 million last year. Booked. About 100,000 used cars have been sold on the motorway since launch, with over 8,000 cars currently being sold a month, with sales expected to total over $2 billion in the next year.

Motorway is also announcing the appointment of James Wilson, Amazon UK’s former Director of Marketplace Fulfillment, as Chief Operating Officer.

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Motorway CEO Tom Leiths said: “Selling 8,000 cars each month is less than one percent of used car sales in the UK – so there’s a huge opportunity ahead.”

Danny Rimmer, Partner at Index Ventures, said: “After joining the board, following our initial investment in June, I have experienced firsthand how fast Motorway is growing and the team to support this incredible growth in the business. How smart is it to raise.

Yunki Sul, Partner, ICONIQ Growth, said: “The online movement of the used car market is only accelerating and we believe Motorway is providing dealers in the UK with the best consumer experience and the most differentiated supply.”

The latest investment brings the motorway’s total to $273 million since it was founded in 2017 by Leiths, Harry Jones and Alex Buttle.

In a call with me Leiths said: “No affiliation with BMW specifically, but they are automotive experts so they bring a lot of knowledge to the white broader market and the trends happening. They work with Latitude and Unbound as well. was also a part of B.”

“What Motorway does differently to a lot of competitors is that we’re not a retailer. We don’t have inventory. We’re a marketplace. And so that allows us to scale more quickly, “They said.

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