The Series C funding brings Motorway to a $1.3B valuation. Here are the top-line bullets you need to know.
Motorway, an online used car marketplace, has raised $189.2M in a Series C round that drew participation from Index Ventures, Latitude, ICONIQ Growth, BMW i Ventures, and Unbound.
How’s the company performing?
- UK-based Motorway’s platform brings together individual car sellers with professional car buyers. It also offers a computer vision-powered smartphone app that can be used to assess and verify the condition of a vehicle.
- The company maintains a network of 4,000 professional car dealers, and it has catered to more than 2.5M customers over the past 4 years.
- Since its inception, the company has facilitated the sale of more than 100,000 used cars. It currently sells around 8000 used cars every month.
- Motorway reported $411M in sales in Q3’21 — a 300% increase year-over-year — and expects to generate $2B in sales over the next year.
- The company is currently supported by a team of around 250 employees.
Why does the market matter?
- The global used car market is expected to reach a value of $2.15T by 2027, growing at a CAGR of 5.5%, according to Grand View Research.
- Online sales of used cars account for about 22% of the total market share and are expected to be a key driver of future industry growth.
- The Covid-19 pandemic has accelerated digitization in the auto retail space, as 61% of consumers are now open to buying a car online, up from 32% before the pandemic.