- Carvana, a leading e-commerce service for buying and selling used cars, announced it raised $600 million through a registered direct offering
Carvana — a leading e-commerce service for buying and selling used cars — announced it has raised $600 million from investors to support its continued innovation and growth. The $600 million investment was made through a registered direct offering of 13.3 million shares of Class A Common Stock. The shares are being purchased at $45 for total gross proceeds of $600 million.
Carvana is known for making every step of the process self-serve and easier: more than 25,000 vehicles to shop from home with no-haggle pricing and financing decisions in minutes with no hit to your credit score. Plus the company offers detailed 360-degree virtual vehicle tours and the peace of mind of a 7-day return policy.
During a period when many businesses are pivoting to the new normal of online sales, Carvana is leading the way and executing on seven years of growth and consumer demand for “The New Way to Buy a Car” that made Carvana the fastest-growing auto retailer in U.S. history.
Carvana’s immediate response to COVID-19 included instituting CDC-recommended sanitization and social distancing measures companywide as well as developing a Touchless Delivery process to further enhance the safety of its employees and customers.
Prior to the major drop in the stock market, Carvana’s stock price peaked at more than $110 on February 21, 2020. About a month later, the stock price fell down to $29.35 and has been fluctuating between $45 and $63 over the past couple of weeks.
Key Quotes:
“We built Carvana because we believed lower prices, a broader selection, a simpler experience, and a 7-day return policy would be a better offering for our customers. The growth we have seen over the last seven years has made it clear that for many customers, that was true. But now we’re all in a different world. Safety is our number one priority. And we’re here to help. The customer offering we have built enables us to provide the same high-quality experiences to customers with Touchless Delivery. Now the ‘New Way to Buy a Car’ is also the safer way to buy a car.”
-Carvana founder and CEO Ernie Garcia,
“Carvana has always been the most trustworthy company in the used car industry. Trust it earned by delivering the best prices, selection, service and convenience with the peace of mind of a 7-day return policy. I’ve always expected that as consumers came to experience Carvana’s unique model they would never buy a car from anyone else. Carvana is now also the safest way to buy a car. I expect that this will accelerate their growing presence in the market while helping people get the transportation they need to serve others.”
-CAS Investment Partners founder Clifford Sosin
