Shift Technologies, an online used vehicle company, has raised an additional $40 million in equity funds, hired on a new COO, increased their engineering team, all while doubling the company's revenues as they prepare for their IPO.
The recent activity, along with what executives have said, is a diligent focus on unit economics, is all directed toward a larger objective to take the company public sometime in 2021.
Shift, which is based in San Francisco, serves car buyers and sellers. The company, founded in 2013, has built a software platform that lets customers shop for cars, get financing and schedule test drives. 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.
Shift generated $135 million in revenues in 2018. The company is projecting revenues between $220 million and $240 million in 2019, Shift co-CEO Toby Russell stated.
An IPO is an aspirational goal, but one both Russell and Founder George Arison believe is achievable. They both pointed to Carvana, an online used car company that went public in 2017.
“Given Carvana’s trailing revenue of $350 million when they went public as a benchmark, we’d be well-positioned for IPO if we can hit $300 million to $400 million,” Russell said. “There’s nothing in stone yet, and IPOs depend on a lot of factors like market conditions, but that benchmark is where we’ll be positioning ourselves in the next two years.”
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