Sequoia and Lone Pine also announced plans to invest at least $ 50 million each in Auto1’s upcoming IPO.
Photographer: Igor Golovniov / SOPA Images / LightRocket via Getty Images
Photographer: Igor Golovniov / SOPA Images / LightRocket via Getty Images
Sequoia Capital agreed to invest in Auto1 Group SE at a valuation of about 6 billion euros ($ 7.2 billion), ahead of the IPO of the German online car trading platform, according to experts.
The US venture capital firm and rival fund Lone Pine Capital reached a preliminary deal to buy approximately $ 50 million each of Auto1stock from an early investor DN Capital, according to the people, who asked not to be identified because the information is private. They have agreed to a six-month lock-up period, people said.
Sequoia and Lone Pine also announced plans to invest at least $ 50 million each in Auto1’s upcoming IPO, people said.
The move marks a vote of confidence in Auto1, backed by Japanese billionaire Masayoshi Son SoftBank Group Corp., and buying and selling cars online. Auto1 said last week that it wants to raise about 1 billion euros in the first quarter from a stock sale in Frankfurt.
A spokesperson for Auto1 declined to comment. An official at DN Capital did not immediately respond to a request for comment, while representatives for Sequoia and Lone Pine could not be reached immediately during a US holiday.
DN Capital became one of Auto1’s first lenders when it invested in the company in 2013, the year after the German startup was founded. website. The venture capital firm previously invested in app developer Shazam Entertainment Ltd., which founded a music recognition service that was later bought by Apple Inc. It also helped fund the UK online broker Purplebricks Group Plc and international money transfer service Remitly Inc.