Shift Technologies, which is one of the largest online marketplace for used cars, has now closed a funding Series of D financing round with a total value of $140 million in equity and debt.
The round, which consists of about $70 million in debt and $71 million in equity, was led by some of the leading and prominent investors which includes the automotive retailer Lithia Motors. Bryan DeBoer, CEO and president of Lithia, will join Shift’s board of directors.
Some of the previous investors Alliance Ventures, BMW iVentures, DCM, DFJ, G2VP, Goldman Sachs Investment Partners and Highland Capital also participated. This new capital brings Shift’s total financing of equity and debt to $265 million.
Shift, is a startup which is based in San Francisco, which acts a car buyers and sellers. The company, founded in the year 2013, has built a platform with the help of a software that lets customers shop for cars, get financing and schedule test drives all these things with the help of an automation. Car owners can use the platform to sell their vehicle, as well. Shift says any car it buys must pass a “rigorous” 150+ point inspection.
The funding which the company has gained is going to used for the technology platform and scale its engineering staff from 35 to more than 80 people by the end of 2019, CEO George Arison told in a report. Shift employs 380 people. The company’s platform has focused on scaling in California; it covers about 80 percent of that market. But the company has long had its sights set on expanding beyond the Golden State.
Shift is focused on, and is heavily investing in, its peer-to-peer business, in which the company has also acquires cars from some of the more individuals and then sells them. Buying, refurbishing and then selling cars online is a logistics-heavy business pursuit, and one that has seen a number of competitors come and go in the past several years. But Arison says the company has not just survived; it has grown.
As of now the company has not revealed any of their revenue numbers. But Arison cited the company’s more than 70 percent revenue growth in the past six months as an example of the company’s success.
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