Online used car retailer Cazoo has bought Cluno, a German startup that lets users hire cars via a subscription-based platform, just days after reports emerged that it is planning to go public. The deal value is not disclosed.
Last week, Sky News reported that Cazoo hired Credit Suisse, Goldman Sachs and Numis to explore options to access the public markets. A London-based IPO is said to be a more likely option, but the company has approached investors about a merger with a US-listed SPAC. Cazoo could be valued at £5 billion (around $7 billion) in its public debut.
Cazoo has secured £450 million in total funding from investors including General Catalyst, D1 Capital Partners and BlackRock. It is currently worth over £2 billion following a £240 million round in October.
Cluno offers consumers access to 100 makes and models for a monthly subscription fee, covering the car, maintenance, insurance, tax and warranty. Since its launch in 2017, it has raised $36 million in VC funding from investors including Valar Ventures and Acton Capital.
This is Cazoo's second acquisition of a car subscription service in three months. In December, it agreed to buy UK-based Drover, which was backed by VCs including Target Global and Autotech Ventures. Both deals are part of Cazoo's plan to expand across Europe.