Cazoo Group
🪦 BankruptTrust Size
$805M
Peak Price
$12.50
Current Price
$0.00
Return
-100.0%
Peak Market Cap
$8.0B
What Happened
UK online used car platform modeled after Carvana. Burned through $2B+ trying to replicate the US model in Europe. Bankrupt by 2024.
Cazoo merged with AJAX Financial Alternatives (Dan Baker) in August 2021, becoming Europes answer to Carvana. The company bought and sold used cars online with home delivery across the UK, France, Germany, and Spain. Cazoo expanded aggressively — buying subscription car companies, building reconditioning centers, and spending massively on marketing (including Premier League sponsorships). But unit economics never worked in Europe where margins are thinner and logistics more complex. After burning $2B+, Cazoo retreated from continental Europe in 2023, did a 1:100 reverse split, and ultimately went bankrupt in 2024.
Projections vs. Reality
Projected Revenue
$4.0B
What they told investors
Actual Revenue
$1.2B
What actually happened
Hype-to-Reality Ratio: 30.0x
Key People
Alex Chesterman
CEO & Founder
Previously founded Zoopla (real estate), exited before the crash
Dan Baker
SPAC Sponsor (AJAX)
Financial sponsor, Goldman alum
Timeline
2021-03
SPAC merger announced
2021-08
Merger completed at $8B valuation
2022-06
Stock falls 80% in 6 months
2023-06
Exits France, Germany, Spain. 1:100 reverse split
2024-06
Bankrupt, assets liquidated
🔀 Reverse Stock Split
Reverse split ratio: 1:100. Reverse splits are used to avoid delisting but destroy shareholder value through the illusion of a higher stock price.
📄 SEC Filings
View all EDGAR filings for Cazoo Group
Risk Scores
Dilution Score
80/100
Insider Profit Index
68/100
Hype-to-Reality Ratio
30.0x
Projected ÷ actual revenue