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carspring

Carspring, a London-based marketplace which enables consumers to purchase used cars online, has raised £5m in Series B funding.

Existing backer Rocket Internet took part in the round alongside Channel 4’s Commercial Growth Fund, which offers TV advertising in exchange for equity.

According to TechCrunch, the startup also drew the support of other undisclosed investors.

Carspring came to life after its co-founders Peter Baumgart and Max Vollenbroich met at consultancy firm McKinsey & Co and bonded over their shared love of cars and frustration about the traditional, offline buying process.

Launched in May 2015, the firm has now raised just shy of $10m across two rounds, and is competing against other disruptors in the space including Carwow, which announced the closure of a $39m Series C just yesterday.

Other disruptors in the space include Hellocar, which closed a £1m Seed round led by JamJar Investments to launch in Manchester ahead of its national roll-out.

The company also announced at the time that Henry Lane Fox, part of the founding team behind lastminute.com and CEO of Founders Factory  – where Hellocar was born – would join the company’s board as a director.