Constellation Automotive’s cinch online car retail platform has strongly denied “far-fetched” rumours that it is lining up an approach to acquire used car supermarket giant Motorpoint.
Reports had linked BCA’s sister retail business with a move for the UK’s largest independent used car retailer, which is currently embarking on a strategy to achieve an annual turnover of £2 billion, in a bid to accelerate its growth ahead of market rivals Cazoo and Carzam.
When AM asked about speculation suggesting that cinch is preparing to bid for Motorpoint, a senior contact at cinch commented: “The rumours circulating about cinch and Motorpoint are far-fetched and completely unfounded.”
AM understands that cinch also has no plans to make an acquisitive move for another of the sector’s established used car retail operators.
Back in May AM reported on cinch attracted £1 billion in new investment to continue its push to online car retail growth.
The Abu Dhabi and Singapore sovereign wealth funds had teamed up with billionaire George Soros to back the business, which is owned by WeBuyAnyCar and BCA Marketplace owner, Constellation Group.
Commenting at the time Constellation’s executive chairman, Avril Palmer-Baunack, said: "cinch is also a key digital sales platform for our partners such as dealers, car manufacturers or leasing companies helping them reach out directly to new consumers and embrace a fully online marketplace.
"This funding round demonstrates the scale of the opportunity ahead of us and allows us to turbocharge our business model and geographical reach in one of the most exciting and fastest growing retail markets in the world.”
Motorpoint is also on a growth trajectory after achieving revenues of £721m and a pre-tax profit of £9.7m in a COVID-19 impacted 2020.
In August it revealed plans to redevelop an LSH Auto UK Mercedes-Benz dealership near to Manchester City’s Etihad football stadium to expand its used car supermarket network into Manchester.
That news followed July’s announcement of plans to near-treble revenues to £2bn in a “medium term” strategy which would involve the opening of 12 new sales and collection branches, on top of its recently expanded 14-site network.
AM has contacted Motorpoint for comment.