The Phoenix-based online used-car retailer, Carvana, announced that it has raised $160 million from its Series C funding round, bringing the total up to $460 million. The company, known for making the first ever coin-op vehicle vending machine, says that it plans to use the funding to improve its presence by expanding physical operations, and adding more employees to its workforce.
The online used-car startup was founded in 2013 and offers a platform to car sellers and buyers to trade their vehicles, while also offering financing advice and options to those who do not have enough cash to make the payment upfront. The company came under the spotlight in December 2013, when it unveiled a second-hand car “vending machine” in Atlanta. The used-car vending machine enables consumers to collect the vehicle (bought online) from the machine, or simply buy a vehicle directly from the machine, without dealing with sales persons.
“Phoenix is really becoming a hub for tech and innovation, and we’re excited to be a part of that,”Carvana co-founder and chief brand officer, Ryan Keeton said. “Over the past three plus years we’ve grown from a small startup to the fastest growing online auto retailer in the nation, and that’s due in large part to our incredibly talented team here.”
The company reported $140 million in revenue last year. It has generated approximately $350 million in revenue this year. The online vehicle-retail startup is making increasing efforts to expand its presence, as it continues to open more vending machines in the US. It opened its first vending machine in Nashville last year.
Once a customer buys a vehicle from the website, they have to visit its enormous kiosk where they will probably find their name and the company’s branded coin that needs to be inserted in the machine’s slot to get the car. Even though Carvana has been in the headlines because of its vending machine, the company also delivers cars to consumers across the US.
While the company refused to share the name of investors in its previous funding round, it did confirm that the funding round includes both new and existing investors. We believe Carvana is unlikely to disclose investors in the latest funding round as well.