New investors for Auto1

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

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

Auto1 has been selling used cars online since 2012. Two years ago, it sold 615,000 cars through its website and apps. That generated a turnover of 3.5 billion euros, which made the start-up interesting for investors. Last week, the start-up now announced its IPO, in which the fledgling company apparently wants to achieve a valuation of six to eight billion euros. The IPO is then expected to flush one billion euros into the startup's coffers for 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 plan to hold the shares for at least six months.