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The
company said the funding was led by a U.S. institutional
investor, along with existing and new investors, but declined to
name them.
Carvana, set up in 2013, said it would use the proceeds to
support its expansion in the United States to more than 20
markets by the end of this year, up from 15 currently, and to
double its inventory to more than 10,000 vehicles.
The company operates automated towers holding several cars. A
customer can buy a car online and can either pick it up from the
"vending machine" or have it delivered.
At the machine, customers are required to enter their details on
a tablet, after which they get a coin. When the coin is inserted
into the machine the ordered car is automatically delivered from
the machine.
The company did not disclose its valuation during the latest
round of funding, but said its current valuation stood at a
premium of more than 50 percent to the previous fundraising
round.
Carvana's valuation would have probably been a little higher in
a better economic environment, Chief Executive Ernie Garcia said
in a statement.
Phoenix-based Carvana reported revenue of $140 million in 2015.
The company is projecting revenue of more than $350 million in
2016.
Carvana's rivals have also raised millions as the ability of
online used-car startups to provide online financing and deliver
cars to a buyer's home has proven to be popular.
New York-based Vroom has raised $168 million so far from
investors including T Rowe Price and Priceline Group Inc Chief
Executive Jeffery Boyd.
Vroom, also launched in 2013, reported revenue of $900 million
in 2015.
Another competitor, Los Altos, California-based Beepi Inc, had
raised about $149 million as of the end of June, with the latest
round of $70 million led by China's biggest automaker, SAIC
Motor Corp.
Beepi, launched in April 2014, has not revealed its revenue for
2015, but has said it increased by more than 10 times.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva)
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