US-based automotive pricing data provider Truecar has filed for an initial public offering that could raise up to $125m.
Founded in 2005 as Zag.com, Truecar has raised more than $210m in equity funding and $212.5m in debt financing.
The company operates an automotive pricing and information website that can be used by both new and used car buyers and dealers, also enabling prospective buyers to negotiate with dealers directly. Although the company has yet to make a profit, it cut its net loss from $75.1m in 2012 to $24.5m in 2013 while increasing revenues from $79.9m to $134m.
Truecar’s largest shareholder is automotive financial services group United Services Automobile Association (USAA), which holds a 26% stake in the company. Another financial services group, Capital One, owns a 16% share and venture capital firm Upfront Ventures 15.2%, while additional investors include DealerTrack, Silicon Valley Bank, Keating Capital, GSV Capital, Passport Capital, Allen & Company, Global Investment House and Arcturus Capital.
The proceeds from the IPO will be used for general corporate purposes. Goldman, Sachs & Co. and J.P. Morgan Securities are acting as underwriters.