Used car market in Europe valued at €450 billion receives significant boost with CarOnSale securing €70 million in funding, marking a strategic advancement for the company.

Berlin-based startup CarOnSale, founded in 2018, has announced that it will use its latest €70 million in funding to expand into new European markets and deepen its presence in current ones. The Series C investment round was led by Northzone and HV Capital, with an additional $82.1 million investment from venture capital firm Creandum.

CarOnSale offers a digital platform for B2B used car trading, aiming to sell one million used cars through its platform. The company is working to scale the efficiency, transparency, and trust its business model creates in Germany to the European level.

CarOnSale's platform includes vehicle inspections, logistics, and payment processing, aiming to streamline the cross-border transaction process by connecting professional car dealers and OEMs via an integrated software ecosystem.

The European used car market, worth upwards of €450 billion, remains largely fragmented and pre-digital. Economic fluctuations frequently redirect the most profitable trading connections, and the regulatory and logistical environment is complex and subject to constant change. However, the significant profit potential of the market has attracted competition, with companies like Cars2click offering AI-driven digital solutions for cross-border used-vehicle trading.

The success of CarOnSale's European expansion depends on the quality and quantity of its partnerships with both OEMs and dealer groups. The company is already working with major OEMs and large numbers of dealers across Europe.

Tom Krüger, CarOnSale's CEO and co-founder, stated that this investment is a major milestone for the company and will accelerate its growth across Europe. The investment follows a previous €60 million round in 2021, totaling $160 million raised over four rounds.

The used car market in Europe is worth upwards of €450 billion and is largely untapped due to its fragmentation and limited digitization. CarOnSale aims to capitalize on this opportunity, working to create a more efficient and transparent used car trading market in Europe.

As the company expands, it will face competition from fellow German company Auto1, which has also been developing capacity in the digitization of the international used car trade in Europe since 2018. However, with its latest funding and strategic partnerships, CarOnSale is well-positioned to make a significant impact in the European used car market.

Used car market in Europe valued at €450 billion receives significant boost with CarOnSale securing €70 million in funding, marking a strategic advancement for the company.