CarLotz Raises $5m to Fund Expansion
RICHMOND and CHESAPEAKE, Va. – August 1, 2014 – CarLotz, a Richmond, Virginia based used vehicle consignment business serving the sale-by-owner and corporate fleet vehicle market, today announced the closing of a $5m round of equity capital that will aid the company’s expansion efforts.
“Since we launched our third store last year in Virginia, we have been focused on increasing customer service, operational efficiency, and profitability through technology and the standardization of our service model across stores. We have also meaningfully expanded our services for corporations with vehicle fleets.” said Michael Bor, CarLotz CEO. Bor continued, “Thanks to the development of proprietary technology and the hard work of our entrepreneurial team, we have achieved our operational goals within existing stores and are now ready to expand our retail centers to serve adjacent geographic markets and businesses throughout the east coast.”
The capital was raised from the Company’s existing investors as well as funds from a small handful of investors and executives with experience in national multi-site retail expansion, real estate, and the broader automotive industry. “We were fortunate to have a very positive response to this capital raise and to receive backing from a group of investors that not only provide capital but also are able to provide strategic guidance as we embark on our ambitious growth plan,” said Bor.
CarLotz is actively seeking new retail center locations throughout Virginia, North Carolina, Maryland, and Georgia in the near term with plans to expand further up and down the east coast over the next several years. CarLotz is also building out its corporate sales team focused on delivering better financial results to companies that maintain vehicle fleets and have historically remarketed its vehicles through the wholesale channel. “We’ve learned that our model allows sellers to get more money for their vehicles and buyers to get more vehicle for their money. This applies to the retail customer with every type of used vehicle as well as to companies that either own or lease their fleets,” said Bor.
“It’s an exciting time to be at CarLotz. With this new round of capital, we will be able to expand our service geographically and show customers in new markets the powerful financial benefits of consigning their vehicles instead of trading them in or wholesaling them through auctions,” commented Bor.
About CarLotz, Inc.
CarLotz (www.CarLotz.com) is a used vehicle consignment business that is driven to make the peer-to-peer or sale-by-owner market the primary channel for used vehicle transactions. CarLotz enables sellers to achieve greater vehicle values without the traditional hassles of the sale-by-owner market, such as meeting with strangers, arranging for financing and warranties, and handling burdensome DMV paperwork. CarLotz was founded in 2011 and has since helped thousands of private sellers and buyers as well as companies with fleets save time and money by transacting safely and efficiently. The Company has been frequently featured in media outlets including NBC, Fox Business, The New York Times, Fast Company, TheStreet.com, The Richmond Times-Dispatch, The Virginian Pilot, and others. The Company has also been consistently voted a “Best Place to Buy a Car” by the readers of Style Weekly and Richmond Magazine.