TrueCar Fuels Up With $200 Million in Funding and Two Acquisitions
Santa Monica, Calif.- based TrueCar, a Kelley Blue Book competitor that also sells cars online, has raised $200 million in debt and equity following the announcement of two major acquisitions.
Participants in the financing include a mix of strategic and financial investors, such as USAA, Capricorn Investment Group and GRP Partners, McCombs Family Partners and DealerTrack Holdings, GSV Capital, Passport Capital, International Investment House and Allen & Company. Debt capital was provided by Silicon Valley Bank.
The financing comes on the heels of two recent acquisitions made by TrueCar: Automotive Lease Guide (ALG), which tracks car values, and Carperks, which is a group-buying site that offers discounts on cars through programs offered to employees of major companies, like Coca Cola, Wells Fargo and Home Depot.
Terms of the acquisitions were not disclosed.
In August, the company said it sold 20,000 vehicles, bringing the total number sold since inception to more than 350,000. It estimates that it saves consumers an average of $4,154 off of a car’s suggested retail price.
Reuters reports that the company is gearing up for an IPO in the first half of next year, and executives likened the company to the “Groupon for cars,” by offering group discounts and feeding off consumers’ desires to find the best deal possible using the Internet.
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