Online used-vehicle startup Gettacar has landed $25 million in new funding and plans to focus on developing products and expanding into new markets.
The suburban Philadelphia company, whose business model is comparable to those of used-vehicle sellers Carvana and Vroom, said it has raised a total of $48 million over three funding rounds in more than two years.
Yossi Levi, Gettacar’s founder, did not disclose what markets the company plans to enter next, but told Automotive News that additional locations have been identified for expansion later this year and in early 2022. Gettacar currently operates in seven markets, including Philadelphia, eastern Pennsylvania, New York, New Jersey, Delaware, Maryland and Washington, D.C. Levi said Gettacar eventually could operate nationally.
Levi, who grew up in Philadelphia and worked at his father’s used-car dealership before starting Gettacar in 2018, said the idea for the company came while observing the transaction process and wondering if it could become faster and more on-demand.
Gettacar allows customers to buy a vehicle online through its website, including trading in an existing vehicle and obtaining financing. Levi said the company offers a seven-day return policy, 365-day warranty and preventative maintenance packages, and will deliver the customer’s vehicle within 48 hours.
Gettacar manages logistics and reconditioning in-house as part of what Levi described as a vertically integrated business model. The company sources its vehicles through multiple channels, including auctions and fleets, and holds its inventory on its balance sheet. Levi said obtaining vehicles from consumers is Gettacar’s fastest-growing acquisition route.
It specializes in vehicles that are 3 to 4 years old with 30,000 to 40,000 miles, Levi said.
Gettacar joins a growing online used-vehicle retailing segment, alongside rivals Carvana, Vroom and Shift. The fragmented U.S. used-vehicle market has created openings for new entrants and for existing retailers — both used-only companies such as CarMax and franchised dealership groups — to expand their own used-vehicle operations. Many of the new and expanding players have similar goals of offering a seamless, digital car-buying experience. While a number of its competitors have gone public, Levi said Gettacar to date has focused on venture capital funding but didn’t rule out the possibility in the future as it expands.
Gettacar said it recorded year-over-year sales growth of 186 percent in 2020, and projects year-over-year sales growth of 210 percent this year. Levi declined to offer specific revenue figures.
He said Gettacar provides more choices to consumers who are looking for a specific experience, adding that he does not believe traditional dealerships will disappear.
“There’s a lot of different types of consumers, and so we’ve just been very, very focused and strategic on who we’re building for,” Levi said. “There’s room for multiple different types of products and services.”
Gettacar’s latest funding round was led by 3L and Luxor Capital, with participation by Torch Capital.