Car Buying Site Beepi in Talks to Raise $50 Million
Beepi, an online car site that just launched in the spring, is in talks to raise around $50 million in venture capital, according to two people familiar with the discussions.
The company is seeking to raise funds at a $200 million valuation, according to a source familiar with the talks. It’s not clear how close the company is to closing a deal, but a source said no term sheet has been signed.
Beepi CEO Ale Resnik declined to comment.
Beepi launched its online car marketplace in April and announced that Redpoint Ventures had led a $5 million investment in the Los Altos, Calif.-based company. The website lets car owners enter in basic information about a vehicle they want to sell and then gives them a quote that Beepi says will always be higher than dealer trade-in prices. If the seller agrees to the quote, Beepi sends out its own inspector to clear the car for listing on the site.
In an interview last month, Resnik told Re/code that the site was projecting $6 million in gross sales for its first year in business. Beepi makes money by keeping a nine percent cut of each car sale.