Constellation Automotive Group (“Constellation”), the largest vertically integrated digital used car marketplace in Europe, announces today that it has raised over £1bn in private capital to accelerate the growth of its highly successful online B2C used car marketplace, cinch, across the UK and Europe from a group of leading global institutional investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), GIC, Neuberger Berman client funds and funds advised by Soros Fund Management LLC.
Constellation trades over 1.5 million vehicles and £12bn GMV (Gross Merchandise Value) annually across 10 main European countries and three leading, integrated and fully digital marketplaces:
- WeBuyAnyCar, the leading Consumer-to-Business (C2B) online car buying platform in the UK provides over 16 million used car valuations a year and allows hundreds of thousands of consumers to sell their car online each year in the quickest and most efficient way, with drop-off locations on average less than a 15 minute drive of UK households
- BCA, the #1 Business-to-Business (B2B) fully digital used car marketplace trades over 1.5 million cars through its online and app-based auction platform each year on behalf of dealers, car manufacturers, leasing companies, banks and other corporate customers supported by the most extensive car remarketing and logistics services across Europe
- cinch, the UK’s leading B2C online used car marketplace is transforming the way consumers buy used cars by allowing them to carry out the process entirely online across thousands of vehicles. From first click to purchase in minutes, with delivery to the consumer’s door from the tip of Scotland to Lands End seven days a week and within 2-hour booking slots
cinch was launched in October 2020 and has quickly established itself as the largest online B2C marketplace for used cars in the UK. cinch allows its c. 30 million unique visitors a year to part exchange their car and buy or finance quality-checked used cars fully online and have them delivered straight to their home. cinch has established itself as one of the fastest growing consumer brands in the UK and a major sponsor of well-known sports teams and events such as the England Cricket team, Tottenham Hotspur, the Northampton Saints or the upcoming tennis cinch Championship at Queen’s Club.
cinch has reached annualised sales of over 45,000 vehicles less than eight months after launch, growing at 45% month-on-month on average and demonstrating how much consumers love its value proposition. Uniquely, cinch not only sells cars it owns but also provides a fully integrated digital marketplace to its trusted partners such as dealers, car manufacturers or leasing companies to reach new consumers and sell their cars directly to them online.
Following on its highly successful launch in the UK, cinch has developed an ambitious expansion plan to expand rapidly in countries across Europe. This latest funding round provides the group with the resources to accelerate this expansion and continue its extensive investments in people, technology, data science, infrastructure and brand building.
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 makes car buying an easy, safe, fun and trusted end-to-end experience by allowing consumers to buy, part exchange or finance used cars in minutes straight from the comfort of their home across thousands of models and with a clear quality stamp of approval. cinch 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.”
Thibaut Large, Partner at TDR Capital, Constellation’s majority shareholder, said: “The €400bn European B2C used car market is at the beginning of a massive digital transformation – similar to the one experienced by so many other retail verticals before. Constellation is in a unique position to lead this transformation. Its relentless growth and development has been nothing short of exceptional. We are delighted to welcome such a distinguished group of investors to Constellation and, together, to become the leading digital disruptor across the European used car value chain.”