Motorway, which allows car sells to compare offers and find the best deals, has raised £2.75m in Seed funding.
LocalGlobe, co-founded by father and son duo Robin and Saul Klein, and Marchmont Ventures led the round.
Zoopla’s founder Alex Chesterman, Duncan Jennings (founder of VoucherCodes.co.uk) and early Spotify backer and co-founder of Student.com Shakil Khan also participated.
Motorway was co-founded by serial entrepreneurs Tom Leathes, Harry Jones and Alex Buttle, an entrepreneurial team that’s worked together for over a decade.
The co-founders have three successful startups behind them, including the UK’s biggest broadband price comparison site, which was acquired by uSwitch.
Leathes, also the CEO, said: “Selling a car can be stressful and time-consuming, and it often leaves consumers feeling confused and out of pocket. There’s a real perception that you need to be a car expert to get a good deal, and that needs to change.
“Motorway makes it easy for everyone to compare the market and find the best deal for their car – and for dealers to connect with motivated sellers instantly.
“With this funding round we’re thrilled to be working with a group of investors with deep experience in price comparison – and who share our focus on championing consumers.”
Suzanne Ashman, a partner at LocalGlobe, said the fund was very excited to be working with Motorway.
“Founders Tom, Harry and Alex have a strong track record of building products that help consumers get the best deals. Creating a compelling experience for people selling their cars is hard. The potential buyers are fragmented with many different online and offline options. Information about the sale process is difficult to find and pricing is often unclear. Motorway’s technology is exceptional and will bring much needed transparency for car owners,” she added.
Hugo Burge, director of Marchmont Ventures, also commented.
“We are delighted to be backing a proven team we have gotten to know over many years and are confident that they’ll execute at breakneck speed. Motorway has an exciting opportunity to significantly improve the often opaque, misleading and confusing marketplace for used cars. We believe in their ability to make a genuine difference for consumers, whilst helping the industry to be more efficient, digitally enabled and better trusted.”