CarNext, Europe’s leading online B2C and B2B used car marketplace, raises EUR 400 million to accelerate growth
CarNext, one of Europe’s leading online B2C and B2B used car marketplaces, today announced that it has been carved out from LeasePlan into a fully independent business owned by a consortium of investors including TDR capital, a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), GIC, PGGM, ATP and Goldman Sachs Asset Management, and raised €400 million to supercharge the next phase of its growth.
Also announced today, CarNext has entered into an exclusive Long-Term Service Agreement with LeasePlan, one of the largest car leasing companies in the world with over 1.8 million vehicles under management in 30 countries. This guarantees CarNext a supply of close to 300,000 high-quality used cars annually to sell through its B2C and B2B marketplaces across Europe, giving the company an excellent base for future growth.
Since its launch in 2018, CarNext has demonstrated exponential growth and increasing scale. CarNext’s B2B operations are present in 22 countries, while its B2C marketplace is already present in seven of the largest markets across Europe. In 2020, CarNext sold 40,000 cars B2C and 200,000 cars via its digital B2B auction platform and trader app across Europe. This represents a GMV (gross merchandise value) of €2.5 billion.
Today’s announcement means that CarNext is in an even stronger position to pursue its ambitious expansion plan across the exciting €400bn European used car market. As an independent business with strong financial backing, CarNext will accelerate vehicle sourcing from trusted third parties, expand its offering across Europe and further boost its growth to help even more customers get great cars, hassle free.
CarNext is accelerating the scale and growth of its core B2C markets one after the other. Over the past year, CarNext executed a successful acceleration strategy in France resulting in sales volumes tripling. Additionally, Cars on Display (CODs) increased to an average of 3,000, making CarNext France’s largest online used car marketplace. From this month, CarNext is accelerating its growth in Germany by specifically targeting brand building, sourcing and infrastructure development, with an aim to be the biggest online used car marketplace in the country by the end of the year.
CarNext has rebuilt the experience of buying a used car entirely online with complete peace of mind, mobilizing the latest technology to put customers in the driving seat and make buying a car fun, easy and transparent. With the support of our investors, CarNext is now in an even stronger position to accelerate its growth strategy across Europe, boost retail sales and achieve network effects. The timing could not be better. Post-Covid, more people than ever want to buy their next used car online, and we have the cars and technology to deliver.
This is a giant step forward for CarNext and a great day for used car customers. We are very happy that CarNext was able to attract this significant funding to accelerate the next phase of its growth, and offer even more customers a great selection of used cars at competitive prices. LeasePlan will continue to focus on what we do best: leading the car subscription megatrend, supported by an industry leading remarketing partner delivering the best prices for our high-quality used vehicles. I am extremely proud of the fully digital business model we’ve built at CarNext, and wish our colleagues every success as they continue to disrupt the exciting used car market.
The €400bn European used car market offers an incredible value creation opportunity as it becomes the next big industry to be disrupted by digital. CarNext is in an ideal position to lead this disruption across Europe: it was one of the first companies to digitize the consumer used car buying experience and, within a matter of years, it has set a standard for innovation, quality and trust. Its long-term partnership with LeasePlan gives it a unique scale and quality of car supply across Europe. We are very excited about what CarNext will achieve next and look forward to seeing it continue to shake up everything we know about how to buy a used car.
About CarNext
CarNext is leading the digital transformation of the €400bn European used car market. CarNext’s B2C marketplace is available across Europe and offers a fully integrated online platform that enables retail customers to buy high-quality used cars entirely online both from LeasePlan’s Car-as-a-Service fleet and a growing network of major trusted third-party suppliers. CarNext’s mission is to transform the consumer’s used car buying experience. Its entire consumer experience is designed to be fun, easy, trustworthy and transparent, with customers able to buy their next car in just two minutes entirely online. All cars on the platform come with fixed all-in pricing, a 228-point reconditioning check, 12-month warranty, home delivery and a 14-day no-questions-asked return guarantee. Consumers can also part exchange their old car and access an extensive suite of ancillary services, such as financing and extended warranties, fully online. CarNext’s unique proposition has been very well received by consumers across Europe, with 40,000 high-quality vehicles sold B2C in 2020 and a consistently high Net Promoter Score (NPS). CarNext has also achieved strong brand recognition, supported by targeted advertising campaigns, highly visible Delivery Stores located along major highways, as well as its partnership with CarNext brand ambassador and F1 legend Max Verstappen, who is currently leading the F1 driver championship. Developed by industry experts over the past 15 years, CarNext also operates a B2B auction platform and digital trader app in 22 countries. This platform offers CarNext’s trusted used car suppliers, including LeasePlan, access to a fully digital end-to-end service to remarket vehicles to either B2B buyers or directly to consumers. This trusted supplier base is also able to plug-in to CarNext’s growing network of 30,000+ traders and benefit from an extensive range of remarketing services, including vehicle transportation, storage, inspection and reconditioning. In total, CarNext sold close to 250,000 vehicles in 2020. Going forward, CarNext is well positioned to lead the digital transformation currently underway in the exciting European used car market thanks to its guaranteed supply of high-quality vehicles from LeasePlan; its unique asset steering model that leverages millions of car value datapoints, proprietary algorithms and technology stacks to match supply and demand across B2B and B2C auctions and geographies; as well as the expertise of its international team of over 600 FTEs, including 150 software developers and data scientists.
About LeasePlan
LeasePlan is one of the world’s leading Car-as-a-Service companies. It purchases, funds and manages new vehicles for its customers, providing a complete end-to-end service for a typical contract duration of three to four years. LeasePlan has approximately 1.9 million vehicles under management in over 30 countries. With over 50 years’ experience, LeasePlan's mission is to provide what’s next in sustainable mobility so our customers can focus on what's next for them. Find out more at www.leaseplan.com/corporate.