TrueCar files for an IPO
TrueCar is a car-pricing comparison website that has filed with regulators to raise up to $125 million in an initial public offering (IPO) of common stock. TrueCar visitors can view the average selling price of a new car along with the sticker price. TrueCar estimates what should be a good price and shows the price that dealers in its network are offering for vehicles.
TrueCar works with a network of 7,000 car dealers and generates revenue from advertising and dealer subscriptions. Some of TrueCar’s competitors include AutoTrader.com, Autobyte.com, Cars.com, and membership based car buying services like Costco’s Auto Program.
TrueCar reported a 67% jump in revenue to $134 million for the year ended December 31st. The company saw a net loss of $25 million during the same period, which is down from $74.5 million a year earlier.
TrueCar received a $30 million investment round from Vulcan Capital. Other investors in TrueCar include Upfront Ventures, Capricorn Investment Group, and USAA.
TrueCar did not reveal how many shares it was planning to sell or what the price range would be. TrueCar is going to list common stock on the Nasdaq under the symbol “TRUE.”
Goldman Sachs and J.P. Morgan Securities are the lead underwriters for the offering. TrueCar will be using the funding for investments and general corporate purposes.