Carspring Investment Could Shake Up UK Automotive Ecommerce
UK-based used car buying site Carspring’s public profile is set to get a boost after reportedly receiving £5 million ($6.75 million) in Series B funding from backers including Berlin-based startup incubator Rocket Internet and Channel 4’s Commercial Growth Fund.
The Channel 4 investment will provide Carspring with £1.3 million ($1.75 million) worth of TV ads in exchange for an equity stake in the 2-year-old business, according to TechCrunch.
Channel 4’s promotional power could help Carspring stand out from a pack of online pure play and omnichannel automotive retailers in the UK still working to achieve widespread brand recognition.
According to comScore Inc. data for March 2017, just one car-focused site—AutoTrader.com—ranked among the top 20 digital properties in the UK in terms of time spent.
But AutoTrader.com’s 670 million combined minutes of usage placed it far behind the likes of generalist marketplaces and classified sites like eBay and Gumtree that also sell cars.
Channel 4’s investment could make Carspring the threat to watch among the UK’s next generation of automotive ecommerce contenders.