German CarOnSale, a digital B2B marketplace for used car trading, has successfully closed a €70 million Series C round to expand across European markets, with the target to scale toward annual sales of 1 million used cars through their platform.
The round was led by new investor Northzone, together with existing lead investor HV Capital, and was further supported by Insight Partners, Stripes, and Creandum.
“This Series C is a major milestone for CarOnSale and a strong signal of trust in our business model and team,” says Tom Krüger, CEO and Co-founder of CarOnSale. “We would like to thank Northzone, HV Capital, and our existing investors for their support and shared confidence. With this strong backing, we now have the perfect foundation to accelerate our growth across Europe even faster.”
CarOnSale was founded in 2018 and is led by Tom Krüger, Fabian Roth, Oguz Özgüler, and Maximilian Schilling with the mission to digitise the professional used car trade across Europe.
The marketplace offers a fully integrated solution, including vehicle inspections, logistics, and payment processing, which the company is confident creates efficiency, transparency, and trust in the international B2B vehicle market.
Sanjot Malhi, Partner at Northzone, says, “CarOnSale is building a category-defining pan-European platform in one of the deepest markets on the continent. Their end-to-end software is transformative for small businesses and the world’s largest OEMs alike. It’s our privilege to partner with Tom and the team, and believe the company has the potential to bring AI to an archaic industry and create a truly generational outcome.”
CarOnSale is reportedly already working with major OEMs and thousands of dealers across Europe, processing significant transaction volumes through their platform, driving digital transformation of a traditional automotive trade sector that has, according to the company, long resisted modernisation.
CarOnSale aims to transform the professional used car trade through their fully integrated software ecosystem that connects professional car dealers and OEMs across borders.
With software solutions and services such as vehicle inspections, logistics, and payment processing, CarOnSale looks to streamline the entire transaction process, making it more efficient, secure, and transparent.
The company says they are targeting the massive €450+ billion European used car market that remains highly fragmented and largely offline, presenting numerous digitisation opportunities.
With this new funding, CarOnSale plans to drive its European expansion, significantly enhance its product and service offering, and further develop its position as the leading digital platform for professional vehicle trading. The company aims to deepen its presence in existing core markets while entering new countries.
In parallel, CarOnSale will expand its team and further develop its digital infrastructure to enable seamless and efficient cross-border vehicle transactions.