Just in:
Party Nominees Refusing To Contest: Major Perception Threat For BJP // Sunshine’s Debut Features Leave Tech World Scratching Its Head // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // Emirates Post Speeds Up Deliveries for GCC with Special Day // HSBC Streamlines Gold Investment for Hong Kong Residents with Tokenized Product // Sharpening the Focus: Sharjah Health Department Refines Evaluation Criteria for “Healthy Schools Programme” // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Hullabaloo About Electoral Bonds May End Up As A Whimper Pre And Post Poll // US reiterates concern over Kejriwal arrest, Cong accounts // No running of govt from jail, says Delhi Lt Governor // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // Superland Announced Annual Results for 2023, 2023 Net Profit Increased approximately 39.5% to approximately HK$22.2 million as Compared to the 2022 Adjusted One // Universal Language for Healthcare: General Authority Embraces Global Coding System // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // Lisboeta Macau’s world first LINE FRIENDS PRESENTS CASA DE AMIGO and BROWN & FRIENDS CAFE & BISTRO has officially opened // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // German Job Market Resilience Bodes Well for Economic Recovery //
HomeChannelsBusinessExclusive: 'Car vending machine' firm Carvana hires banks for IPO – sources

Exclusive: 'Car vending machine' firm Carvana hires banks for IPO – sources

1489219817

ADVERTISEMENT

U.S. used-auto retailer Carvana LLC, which allows customers to pick up cars they buy on the internet from vending machine-like towers, has tapped investment banks for an initial public offering, according to people familiar with the matter.

The move comes as more consumers become comfortable with online used-car purchases. TrueCar Inc (TRUE.O), for example, a car-shopping service that matches buyers with dealers online, has seen its shares rise 150 percent in the last 12 months.

Carvana has hired Wells Fargo & Co (WFC.N) and Bank of America Corp (BAC.N) to lead its IPO, the people said this week.

The Phoenix, Arizona-based company hopes to go public in the first half of the year at a valuation of well over $2 billion, the people added.

The sources asked not to be identified because the matter is confidential. Carvana declined to comment. Wells Fargo and Bank of America did not respond to requests for comment.

Demand for cars, sport utility vehicles and pickup trucks has remained robust among U.S. consumers, even as it dipped slightly in February to an annualized pace of 17.6 million vehicles, compared with 17.7 million a year earlier, according to Autodata Corp.

Carvana sells cars through its website and operates automated towers that store cars in U.S. cities such as Austin and Dallas in Texas, and Nashville, Tennessee.

Customers can purchase cars online and either have them delivered or pick them up from the ‘vending machine’ towers using a special coin. Carvana also provides auto financing for customers making purchases.

The company reported revenue of $140 million in 2015, and projected revenue of more than $350 million in 2016. It is not yet profitable, according to one of the sources.

Founded in 2013, Carvana is one of a handful of companies trying to disrupt how cars are traditionally bought in dealerships and take on Carmax Inc (KMX.N), the largest used-car retailer in the United States.

The road has not been always been smooth for new entrants to the car retail market. One of Carvana’s competitors, the online car marketplace Beepi, went out of business earlier this year.

Ally Financial Inc (ALLY.N) announced in January it would finance up to $600 million of Carvana’s customers’ loans. Carvana also said last August that it closed a $160 million funding round, bringing the total it has raised to nearly $500 million.

One of Carvana’s backers is DriveTime Automotive Group, a network of used-car dealerships and car refurbishment centers.

(Reporting by Liana B. Baker in San Francisco; Editing by Bernadette Baum)

Reuters

ADVERTISEMENT

ADVERTISEMENT
Just in:
Emirates Post Speeds Up Deliveries for GCC with Special Day // Renewables Surge Sets Record, But Global Equity Lags // Universal Language for Healthcare: General Authority Embraces Global Coding System // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // Sunshine’s Debut Features Leave Tech World Scratching Its Head // HSBC Streamlines Gold Investment for Hong Kong Residents with Tokenized Product // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // AI Boost for Galaxy Devices: Samsung Expands One UI 6.1 Update // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // No running of govt from jail, says Delhi Lt Governor // Lisboeta Macau’s world first LINE FRIENDS PRESENTS CASA DE AMIGO and BROWN & FRIENDS CAFE & BISTRO has officially opened // Arvind Kejriwal Gets International Heft Against The Deshi Vishwaguru // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // Near Miss at Kolkata Airport: IndiGo Plane Makes Contact with Stationary Air India Express // US reiterates concern over Kejriwal arrest, Cong accounts // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Hullabaloo About Electoral Bonds May End Up As A Whimper Pre And Post Poll // Experts come together to support updating the city’s nature conservation masterplan // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology //