Carvana, a US-based online used vehicle seller backed by used car dealership chain DriveTime, is looking to raise $300m in growth funding, TechCrunch reported yesterday citing sources with knowledge of the situation.
Founded in 2013, Carvana runs a platform through which users can browse, search or buy used vehicles. It sources the cars itself, buying them from individual sellers, fleets and auctions before reconditioning them for sale to its customers.
The company has also established a financing mechanism that enables it to offer direct loans to its customers without relying on approval from a third-party finance provider.
Carvana has raised $50m in funding so far from investors including DriveTime, which also gives Carvana access to its facilities in order to service their cars.
Carvana expects to officially announce the funding in the upcoming weeks and will used the cash to scale its operations.
The funding is likely to come from both institutional and strategic investors, with the company eager to form the connections that would allow it to enter new markets across the US.