Cazoo is a French online used car retailer and it is headquartered in Paris. The company was founded in 2018 by Alexandre Berge and Frederic Mazzella. Cazoo went public on the London Stock Exchange through a £1.9 billion ($2.6 billion) IPO, giving it a market value of £5.4 billion ($7.3 billion) on December 10, 2020.
The online used car retailer, Cazoo, saw its shares surge by almost a fifth on its stock market debut.
The company, which is based in the UK but has operations across Europe, was valued at £2.2bn when it started trading on the London Stock Exchange’s main market.
At one point during the day, its shares were up 18% to 156p.
They have since come off those highs but are still trading well above their initial public offering (IPO) price of 120p.
Cazoo’s IPO is one of the biggest in London this year and comes amid a boom in so-called “special purpose acquisition companies” (SPACs), which have raised billions of dollars to take businesses public without going through the traditional IPO process.
Cazoo Share Price Lse
Cazoo is a used car buying and selling platform that offers customers a wide range of choice, transparency and convenience when looking to buy their next used car. The company was founded in December 2018 by Alex Chesterman OBE, the founder & CEO of Zoopla. Cazoo has raised over £300m from some of Europe’s leading investors including Stride.VC, Durable Capital Partners LP, DMGT plc, Octopus Ventures, Highland Europe and Tatneft.
Cazoo’s mission is to revolutionise the way people buy used cars in Europe by making the entire process 100% online from start to finish so that buying a used car can be as simple and convenient as buying any other product online. Cazoo aims to make the process of buying a used car faster, simpler and more transparent for consumers whilst also delivering significant cost savings compared to traditional dealerships.
Cazoo launched its website in the UK in December 2019 following successful launches across France and Germany earlier in the year.
The company plans to continue its rapid expansion across Europe with further country launches expected throughout 2020.
The Cazoo share price is currently trading at around 275p (as of April 2020), giving the company a valuation of just over £2 billion on the London Stock Exchange (LSE). This makes Cazoo one of Britain’s most valuable tech startups and one to watch out for in the coming years!
Credit: www.thetimes.co.uk
Is Cazoo a Buy?
Cazoo is an online used car marketplace headquartered in London. It was founded in December 2018 by Alex Chesterman OBE, the founder & CEO of Zoopla. The company has raised $460 million in equity funding from investors including DMGT, Stride.VC, Vitruvian Partners, Octopus Ventures, Target Global and Accel.
So far Cazoo has been very successful. In its first year it sold over 10,000 cars and turned over £200 million. The company has also been profitable since March 2020.
The main reason for Cazoo’s success is its focus on giving customers a great experience. It offers free delivery within seven days and a 14-day money-back guarantee. It also provides extensive vehicle history checks and comes with a warranty as standard.
I believe Cazoo is a good buy at current prices for three reasons:
1) It has strong growth prospects given the size of the opportunity in Europe’s used car market;
2) It has a differentiated product offering which should allow it to gain market share; and
3) Its business model is scalable and capital efficient.
Why is Cazoo Stock Down?
Cazoo stock is down today after the company announced its financial results for the first quarter of 2021. The company reported a loss of £4.3 million (approximately $6.1 million), compared to a profit of £2.5 million (approximately $3.4 million) in the same period last year. Cazoo attributed the loss to higher costs associated with its expansion into new markets and investments in technology and product development.
Despite the quarterly loss, Cazoo remains confident in its long-term prospects. The company noted that it has grown its revenue by more than 400% since launching in December 2020, and it is on track to achieve its goal of becoming Europe’s leading online used car retailer. Cazoo plans to continue investing in growth initiatives, such as expanding into new markets and increasing its marketing spend, in order to drive further growth in the future.
Investors appear to be taking a wait-and-see approach with Cazoo stock at present, but the company’s long-term prospects remain strong.
Is Cazoo a Listed Company?
Cazoo is not a listed company. It is a privately held company that was founded in 2018.
What is Cazoo Net Worth?
Cazoo is a used car marketplace founded by Alex Chesterman OBE. The company has raised $460 million in funding to date and was valued at $2 billion in January 2021.
Prior to launching Cazoo, Chesterman co-founded and built Zoopla, one of the UK’s leading property websites which he sold for £2.2 billion in 2018.
Cazoo’s mission is to transform the way people buy cars in Europe by offering a superior customer experience with massive selection, great value, convenience and transparency.
Cazoo is headquartered in London with offices across Europe including Germany, France, Italy and Spain.
Cazoo: Stock to watch!!!
Conclusion
This week has seen the Cazoo share price climb to new heights as the online car buying platform continues to gain momentum. After listing on the London Stock Exchange last December, Cazoo has been one of 2020’s hottest IPOs. The company is now valued at over £5 billion and its shares have more than doubled in value since floating.
Cazoo’s success is being driven by the shift to online car buying that has accelerated during the pandemic. With showrooms closed and consumers reluctant to visit dealerships, Cazoo has emerged as a convenient and trustworthy alternative. The company offers a 7-day money-back guarantee on all its cars, as well as free delivery and returns, which gives buyers peace of mind when making such a big purchase online.
Cazoo is also benefiting from strong tailwinds in Europe’s used car market. With new car sales falling sharply due to the pandemic, demand for used cars has surged. This is good news for Cazoo, which specializes in selling certified used cars that come with a warranty.
With its share price soaring, Cazoo looks well-positioned to capitalize on the structural shift to online car buying that is taking place across Europe.
