US-based automotive portal Carvana, best known for their 'car vending machines', is rumored to be hiring banks for a potential IPO.
The move comes as more consumers become comfortable with online used-car purchases
Sources close to the company say Carvana has hired Wells Fargo & Co and Bank of America Corp to lead its IPO. They also added that the Arizona-based company hopes to go public in the first half of the year at a valuation of well over $2 billion.
Carvana sells cars through its website and operates automated towers that store cars in U.S. cities such as Austin and Dallas in Texas, and Nashville, Tennessee.
Customers can purchase cars online and either have them delivered or pick them up from the 'vending machine' towers using a special coin. Carvana also provides auto financing for customers making purchases.
The company reported revenue of $140 million in 2015, and projected revenue of more than $350 million in 2016. It is not yet profitable, according to one of the sources.