The mark of success for most any new business is whether or not it makes the leap to “go public.”
One of the latest companies to join the group of public companies is the online marketplace for buying used cars, Carvana. The Phoenix-based company that describes itself as the “Amazon of Cars” filed for its initial public offering (IPO) on Friday. Through this filing, Carvana hopes to raise approximately $100 million.
Earlier in March, we reported on Carvana’s bank selection of Wells Fargo & Co. and Bank of America Corp. to help it with the IPO filing process. At this time, the company has not shared a price range or how many shares it will seek to offer in its regulatory filing. It will trade under the CVNA ticker symbol at the New York Stock Exchange.
Although there are many competitors in the online used car sales space, Carvana may have a leg up in the market. As we’ve reported in the past, Carvana differentiates itself through its multi-level vending machines made of glass and steel. These structures currently exist in about two dozen markets, which include Austin, Atlanta, Dallas, Pittsburgh and Washington, D.C.
Founded in 2012, the company opened its first location in Nashville and hasn’t earned a profit since. 2016 brought about $365.1 million in revenue but $92.1 million in losses. What makes Carvana a likely success story moving forward is the fact that 2016 was much better than the year prior. In 2015, the company only saw $130.4 million in revenue. To date, Carvana has lost $152.6 million and is hoping this will only continue in the near future, but not in the long run.
Source: http://www.pymnts.com – Payments
Car Marketplace Carvana Files Its IPO