German Startup Auto1 Valued at $2.8 Billion in Latest Funding Round

  • Company raised 360 million euros in equity and debt this year
  • JPMorgan, Goldman Sachs, Barclays, Citigroup among lenders

German used-car portal Auto1 Group was valued at 2.5 billion euros ($2.8 billion) in its latest round of funding from investors including Baillie Gifford & Co., Princeville Global and Target Global, according to a company presentation.

Auto1 raised 360 million euros through a mixture of debt and equity financing in a round that closed earlier this year. JPMorgan Chase & Co., Goldman Sachs Group Inc., Barclays Plc, Citigroup Inc., BNP Paribas SA and BHF-Bank AG were lending banks.

The company valuation has more than doubled since it reached about $1 billion in a funding round in 2015. Auto1 bills itself as an online stock exchange for used cars, buying vehicles from individuals and selling them on to dealerships. The company is based in Berlin, which has become an incubator for technology startups with Zalando SE, Delivery Hero and HelloFresh among firms based in the city.

In 2016, Auto1 reported revenue of 1.5 billion euros, compared with 750 million euros the previous year. The valuation makes it big enough to list, though co-Chief Executive Officer Christian Bertermann said the company is well funded, and there are no current plans for an initial public offering.

“We continue to target very high growth rates and seek to achieve a 10 percent market share in mainland Europe mid- to long-term,” Bertermann said in an interview. Auto1 has about 320 branches and sold around 330,000 cars in Europe last year.

Auto1’s core markets are now profitable, according to the presentation. Bertermann declined to give a breakdown of earnings.

Europe beat a global slowdown in venture capital funding at the end of last year, according to a report from PricewaterhouseCoopers LLP and CB Insights. Funding into the continent rose 22 percent in the fourth quarter and the number of deals rose even as global funding fell from the year before.