The company that sells cars from a giant vending machine has filed for an IPO

pulse

March 31, 2017 10:36 PM

Online car dealership Carvana has filed for an initial public offering.

Vehicles are displayed at a Carvana dealership, which allows customers to buy a used car online and have it delivered or pick it up from an automated-tower, in Austin, Texas, U.S., March 9, 2017. REUTERS/Brian Snyder

Carvana, the company best known for selling cars from a giant vending machine, filed for an initial public offering on Friday.

The online car dealership is looking to raise $100 million, according to an SEC filing, though that could change. Carvana has hired Wells Fargo, Bank of America, Citigroup, and Deutsche Bank to lead the IPO.

Carvana sells cars online that customers can either pick up or have delivered directly to their house. Those who choose the former can retrieve the car from a giant, five-story vending machine that's located in cities like Austin, Dallas, and Nashville.

The company plans to list it shares on the New York Stock Exchange under the ticker CVNA.

Carvana reported revenue of $130.4 million in 2015 and $365 million in revenue in 2016, according to the SEC filing. It reported a net loss of $93.1 million last year.

Carvana wrote that it has a history of losses and "may not achieve or maintain profitability in the future" under Risk Factors in its SEC filing.

"We have not been profitable since our inception in 2012 and had an accumulated loss of approximately $152.6 million as of December 31, 2016," the Risk Factors section reads.

Carvana added under Risk Factors that it expects to makes "significant investments" to expand its business and that "these investments may not result in increased revenue or growth on a timely basis or at all."

"In addition, as a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. As a result of these increased expenditures, we will have to generate and sustain increased revenue to achieve and maintain profitability," the Risk Factors section continues.

Carvana has filed for its IPO at a time where more companies are interested in disrupting the traditional car dealership model.

Tesla sells its cars through its own branded stores in states that allow it. Amazon has also partnered with Fiat Chrysler to sell cars online in Italy.

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