Motorway has today announced it has secured £11 million in Series A funding to further expand its next-generation used car marketplace.
The funding round was led by Marchmont Ventures, which is managed by Hugo Burge and Alan Martin (the former CEO and CFO of Momondo Group), along with participation from existing backer LocalGlobe.
Launched in 2017, Motorway’s website enables consumer car sellers to instantly see live offers from multiple car buying services and specialist dealerships. They can compare headline offers, read buyer reviews, fees and collection options to find their best deal. By comparing offers, consumers can get up to £1,000 more than going direct to one buyer.
As a two-sided marketplace, Motorway’s buyer platform provides a fast, efficient way for car buying firms to buy the best used car stock, direct from consumers – cutting out middlemen, and helping everyone get a better deal.
Last year, Motorway raised £2.75m in Seed funding from Marchmont Ventures and LocalGlobe, and has since grown rapidly – the platform now has over 100,000 monthly customer sales enquiries, and has achieved over £130m worth of completed car sales through its buyers in just 18 months.
This new investment will facilitate further development of its team (currently 40), software platform, expansion of its network of car buyers and marketing of the service throughout the UK.
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Tom Leathes, CEO & Co-Founder of Motorway said: “We started Motorway with the vision to bring speed, choice and transparency to the process of selling a car – an experience that’s gone mostly unchanged for decades.
“This is a complex industry that frequently delivers a bad experience for sellers and buyers alike. We simplify the process – bringing instant price comparison into the hands of sellers, and powerful technology tools for car buying firms. That’s helped us grow rapidly in a short space of time, but we’ve really only just got started.”
Director of Marchmont Ventures, Hugo Burge says: “It’s an honour to be part of this exciting journey. Motorway is setting new levels of customer experience and transparency in the UK used car market and I am confident that the team can capitalise on this opportunity.”