Beepi, a US-based peer-to-peer used car marketplace, is shutting down its operations in California, letting go of 180 staff and merging with stealth startup Fair.com, TechCrunch reported yesterday.
The move comes after a strategic investor decided to pull out of Beepi. That shareholder is reportedly SAIC Motor, the automotive manufacturer that led a $70m funding round in December 2015.
That funding round was $230m short of Beepi’s target, signalling first issues. The company, which had expanded to 16 US states, will be left with 80 staff following the layoffs.
Founded in 2013, Beepi operated a marketplace for users to sell and buy used cars. The company had raised a total of $149m in capital and recently approached its competitor Shift about an acquisition deal.
Beepi’s shareholders also include Redpoint Ventures, Silicon Valley Bank, Comerica, Foundation Capital, Sherpa Ventures, DST and more than 80 angel investors.
Details about Fair.com are hazy, though its website implies that it may provide a car leasing service. The company is headed by Georg Bauer, formerly of car makers BMW, Mercedes-Benz and Tesla, Scott Painter, formerly of automotive pricing site TrueCar, and Fedor Ariles, formerly of car brands Mercedes-Benz, Chrysler, Volkswagen and Tesla.
Ale Resnik, co-founder and chief executive of Beepi, will remain with Fair.com following the acquisition.