Used car dealer Cinch raises £1bn to speed up European growth
Used car dealer Cinch this morning confirmed that it had raised £1bn from a group of blue-chip investors to fund the online platform’s expansion.
Investors included a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), GIC, Neuberger Berman client funds and funds advised by Soros Fund Management.
Sky first reported the raise, which is thought to be one of the largest-ever private equity injections into a UK-based company.
Cinch’s owner Constellation Automotive Group said the funds would be used to continue the firm’s growth in Europe and the UK, where it is already the leading used car platform.
Avril Palmer-Baunack, Constellation’s executive chairman, said: “Constellation’s marketplaces,
technology, data and infrastructure provide the backbone of the used car market across Europe.
“Cinch extends this presence by transforming the used-car buying experience for consumers. It is also a key digital sales platform for our partners such as dealers, car manufacturers or leasing companies helping them reach out directly to new consumers and embrace a fully online marketplace.
“This funding round demonstrates the scale of the opportunity ahead of us and allows us to turbocharge our business model and geographical reach in one of the most exciting and fastest growing retail markets in the world.”
Less than eight months after launching, Cinch said that it was growing at a rate of 45 per cent per month and is on track for annualised sales of 45,000 vehicles.
It is one of a number of new platforms trying to shake-up the used car markets. Another, Cazoo, recently announced that it would list in the US through a SPAC deal worth $7bn.