U.K. Used-Car Seller Cinch Raises $1.4 Billion for Expansion (1)

One of the U.K.’s biggest online marketplaces for used cars has raised more than 1 billion pounds ($1.4 billion) to expand at home and across Europe.

Constellation Automotive Group, which was taken over by private equity firm TDR Capital in 2019, will use the funds to expand Cinch, the car-buying service that has expanded quickly since its launch less than a year ago. The business competes with Cazoo Ltd., which recently reached a deal valued at $7 billion with hedge-fund founder Dan Och’s blank-check company, and Auto1 Group, which listed in Frankfurt in February.

“This is ...