New investors for Auto1

Shortly before the IPO, US investors Sequoia and Lone Pine buy shares in online car dealer Auto1. The start-up is now valued at six billion euros.

The two US venture capital funds Sequoia Capital and Lone Pine Capital have acquired blocks of shares in Auto1. They bought these from the existing investor DN Capital. This gives Auto1 a valuation of six billion euros and another boost before its IPO.

Auto1 has been selling used cars online since 2012. Two years ago, 615,000 cars were sold via the website and apps. This generated a turnover of 3.5 billion euros, which made the start-up interesting for investors. Last week, the start-up announced its IPO, in which the still young company apparently wants to achieve a valuation of six to eight billion euros. The IPO is expected to raise one billion euros for the start-up's further growth. The deal was first reported by Bloomberg with reference to people familiar with the purchase. DN Capital is said to have received 50 million euros each from the two capital companies from the USA. The two new investors intend to hold the shares for at least six months.