New British online used car marketplace Carzam has published its first set of accounts for the period from when it was founded in September 2020 to the end of 2020, less than one month after it began trading.

Carzam started trading in December 2020, entering a fierce market where it competes with Cazoo, Cinch and HeyCar amongst others. In the first 4 weeks of trading the company generated revenue of £3.15 million ($4.25 million U.S.). However, launch and start-up costs wiped out even a gross profit as its cost of sales were £3.24 million, according to the total exemption full accounts filed with the U.K.’s Companies House on November 1 2021.

Further administrative expenses of over £2 million resulted in an operating loss of £2.18 million and £316,792 of interest payable and similar charges led to a final loss before tax of £2.49 million for the period.

However, an initial trading loss doesn’t mean the company will not succeed. As we have seen with Cazoo, Carzam’s new online car-selling business also gestated for several months and delayed its initial planned launch until after the second U.K. national lockdown ended Dec. 2020, so built up costs from the initial announcement in March 2020 from co-founders Peter Waddell, Big Motoring World CEO, and John Bailey, former president of international operations at Cox Automotive.

Carzam has given no further indication of the number of cars it has sold, except an initial figure from the first eight weeks of trading, when it said it had sold 1,600 cars in that period. Apart from a snippet that reported record sales for a week in mid-April 2021, after the U.K.’s third lockdown was lifted, we have no more detail on what it has sold.

In April 2021, the company said it’s on target to sell more cars than either Cazoo or U.S. auto marketplace Carvana did in their first year. Cazoo sold about 10,000 cars in its first year.

In May, similar to initiatives launched by competitors, Carzam launched a used car buying service.

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