Owen Savir and Alejandro Resnick’s used car startup Beepi has just raised $60 million in investments after only one year in existence. The funding gives the company a valuation of $200 million.
First the Internet, then smart phones and now all manner of mobile devices have completely changed the way in which people conduct business transactions and buy items. We can now all get just about anything we want with the touch of a button.
So why not cars?
Beepi says that it replaces the used car dealer and the used car lot with a system that connects buyers and sellers in a radical new way. “No negotiating, no trips to the dealer, no surprises – and no commission to the guy with the plaid jacket. Which means a better price for everyone, ” declares its website.
The funding came from venture-capital firms that also invested in car-hailing startup Uber Technologies and LendingClub, which offers peer-to-peer loans. Both of those companies offer similar services to Beepi so it makes sense that it got money from those backers.
Foundation Capital and SherpaVentures came in as new investors. Others participating included existing investors Redpoint Ventures, SherpaFoundry CEO Tina Sharkey, OLX founder Fabrice Grinda, IG Expansion co-founder Jose Marin, Homeaway co-founderBrian Sharples, former Loopnet CEO Rich Boyle and Silicon Valley Bank.
The company has a simple system in place. If you want to sell a used car, Beepi will send a mechanic to your home to inspect it and set a price. It will then sell the car and actually drive it to the buyer.
If you are looking to buy, the company offers a ten day money back guarantee. The company also takes care of the transfer of title and all other paperwork.
Beepi promises the seller a price above the car’s Blue Book value and the buyer a price lower than it. If that is so then does that nit mean that it loses money on each transaction? And that’s in addition to all of its other expenses.
The firm currently only operates in California.