Phoenix, Ariz.-based startup Carvana, an online pre-owned car dealer, said it closed a $160 million Series C funding round, bringing total funding to $460 million. The funding sources have not been disclosed.
“We are incredibly excited to share that Carvana has officially closed its largest round of funding to date. That funding was secured through both existing and new investors, and is a testament to our team and the hard work everyone has put in to build Carvana into the brand it is today,” said Ernie Garcia, founder and CEO of Carvana.
Founded in 2013 and and backed by DriveTime Automotive Group Inc., Carvana is the first complete online auto retailer offering vehicle purchase in as little as 11 minutes, with an average savings of $1,681, says the company. DriveTime is a used car retailer and finance company based in Tempe, Ariz. formerly known as Ugly Duckling until 2002. Drivetime spun off Carvana, GO Financial, SilverRock Group Inc, and Bridgecrest Acceptance Corp.
With Carvana, consumers can shop for, finance, purchase and trade-in a car entirely online, while receiving next-day vehicle delivery or pick-up at its vehicle vending machine. Carvana cars come with an accident-free guarantee, undergo a rigorous 150-point inspection and come with a 100-day/4,189 mile bumper-to-bumper warranty, as well as a 7-day return policy.
In the past year, the company launched the world’s first coin-operated car vending machine in Nashville, Tenn., and tripled the number of markets where it has a physical operation to 15 – six of which launched within the past five months with several more planned by the end of the year.
While Carvana already delivers to customers nationwide, it is now able to offer delivery as soon as the next-day to the following markets: Atlanta, Austin, Birmingham, Charlotte, Dallas, Houston, Jacksonville, Miami, Nashville, Orlando, Raleigh, Richmond, San Antonio, Tampa and Washington, D.C.
The move comes after rival online retailer of pre-owned cars Vroom raised a new $28.8 million equity funding round a month ago. The startup, formerly known as AutoAmerica until November 2014, previously raised $203 million in several funding rounds. Vroom backers include private equity firm L Catterton and notable institutional investors Allen & Co., General Catalyst, and T. Rowe Price, as well as a group of private tycoons, including John Elway (a former auto dealerships owner, Pro-Football Hall of Fame quarterback and current GM and EVP for the Denver Broncos), Steve Berard (former CEO of AutoNation, and partner of Wayne Huizenga for three decades), Jeffery Boyd (chairman and former CEO of Priceline), and Bob Mylod (former vice-chairman and CFO of Priceline).