London-based used car marketplace Motorway has secured a fresh £25 million loan facility, a move that follows the company reporting significantly widened annual losses.
Financial Details and Strategic Rationale
The online platform, which achieved a valuation exceeding $1 billion in 2021, confirmed the loan agreement was finalised on 23 December. By the year's end, £15 million had already been drawn down. The terms stipulate an interest-only period for the initial two years, with capital repayments scheduled to begin afterwards over a 30-month timeline.
This financial injection comes against a backdrop of increasing losses. Motorway filed accounts showing a pre-tax loss of £37.3 million for 2024, marking a 17.4% increase from the previous year. This occurred despite the firm growing its revenue by 8.9% to £66.4 million over the same period.
In a statement to Companies House, the company attributed the rising deficit to a "strategic decision to build the infrastructure needed to support sustainable long-term growth." Motorway reiterated its commitment to eventually reaching profitability.
CEO Focuses on Foundations for Future Growth
Tom Leathes, Motorway's chief executive and co-founder, elaborated on the strategy. "Following a period of rapid scale in prior years, we deliberately focused on strengthening the foundations of the business to support the next stage of growth," he said.
"This meant prioritising platform stability, operational resilience and dealer infrastructure rather than short term financial performance." Leathes highlighted the firm's bespoke Motorway Pay platform as a key investment area, noting it has already attracted over 2,000 dealers since launch.
Market Position and Expansion Plans
Founded in 2016, Motorway operates a digital marketplace connecting used car sellers with professional dealers. Its shareholder roster includes automotive giant BMW and prominent venture capital firms Index Ventures and ICONIQ Growth.
The company has facilitated the sale of more than half a million cars, with a total gross merchandise value of £2.2 billion in 2024 alone. Its expansion efforts included the 2023 acquisition of vehicle history check provider Total Car Check for an undisclosed sum, a deal that involved issuing over one million Motorway shares to the sellers.
Looking ahead, Leathes has previously discussed the potential for a future listing on the London Stock Exchange, though the main market has faced challenges with IPOs in recent years.
