VC-backed Cazoo acquires Target Global-backed Drover

Katharine Hidalgo
18 December 2020

Tweet
Facebook
LinkedIn
Google plus
Send to

VC-backed Cazoo has acquired car subscription company Drover, which is backed by Target Global and a number of other VCs.

Cazoo has made the acquisition to be able to offer its customers the option of purchasing, financing or subscribing to the thousands of cars on its platform. Cazoo had initially planned to launch its own subscription service in H2 2021.

In addition to its operations in the UK, a market Cazoo is currently developing a presence in, Drover also has a nascent subscription business in France, which is intended to form the launchpad for Cazoo's planned European expansion as it looks to push into other markets and expand in France, according to a statement.

Cazoo generates revenue of £150m and has a valuation of more than £2bn, according to a statement. The company is backed by a number of investors including Draper Esprit, DMG Ventures, General Catalyst, CNP, Mubadala, Octopus Ventures, Eight Roads Ventures and Stride.VC.

Previous funding
Forward Partners and Version One invested £2m in a pre-seed round for Drover, in 2015.

Cherry Ventures, Partech, and BP Ventures co-led a £5.5m funding round for Drover in March 2018. Forward Partners and Version One also participated in the funding round.

Target Global, RTP Global, and Autotech Ventures co-led a £20.5m funding round for the car subscription company in July 2020. The round also saw participation from new investors Channel 4 Ventures and Rider Global, and existing investors Cherry Ventures, BP Ventures, Partech, Version One, and Forward Partners.

The company raised £2.25m for a series-B extension in October 2020, which saw participation from Shell Ventures.

Company
Founded in 2016, Drover employs 100 people in its headquarters in London, as well as offices in Lisbon, Paris and Bucharest. The company offers a monthly subscription fee, which includes the car, maintenance, service, road tax and breakdown cover.

People
Cazoo - Alex Chesterman (founder, CEO).
Drover - Felix Leuschner (founder).