SoftBank Group is set to invested €460 million (£409 million) into used Berlin-based online car marketplace Auto1.
Auto1 has reportedly sold hundreds of thousands of cars on its platform. Revenues in 2016 came in at €1.5 billion (£1.3 billion).
Since its launch in 2012, Auto1 has connected more than 30 countries, and is also reportedly trading with more than 35,000 professional partners and selling more than 40,000 cars per month, backed up by Goldman Sachs and JP Morgan.
The SoftBank investment, which was announced by Auto1 announced in a press release on Monday about the SoftBank investment which comes through the SoftBank Vision Fund.
The Vision Fund is the largest tech investment fund in the world, is taking a 20 per cent stake in Auto1 by this investment, according to sources.
Auto1 group co-CEO Hakan Koç said in a statement: “We are delighted to welcome SoftBank Vision Fund, one of the largest tech funds in the world, as an investor in AUTO1 Group.”
He also added, “We believe that the Fund’s deep investment and technology expertise will help us to accelerate our growth as we continue to focus on making the used vehicle market more efficient and transparent.”
Akshay Naheta, partner at SoftBank Investment Advisors, who will join Auto1’s board backing the investment, said, “Auto1 Group has built a fast growing, data-enabled platform introducing efficiency and transparency to the fragmented used car market, which is worth more than $300 billion annually, The SoftBank Vision Fund’s capital and our operational expertise with marketplace businesses will support continued global growth.”
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