MENLO PARK, CA - OPENLANE, Inc., an online auction company in North America for automotive dealers to buy and sell wholesale vehicles, recently announced the company has closed a $25 million funding round led by Meritech Capital Partners.
Also participating in the round were existing investors August Capital, RPM Ventures, and Zilkha Venture Partners. The funds will be used to help the company scale in line with rising demand for its online wholesale auction, while continuing to maintain high levels of customer service and product innovation.
OPENLANE sold over 270,000 vehicles online in 2007, valued at over $4 billion and generating in excess of $60 million in revenues. This represented revenue growth of approximately 60 percent compared to the prior year. The company experienced continued strong growth in the first quarter of 2008. Revenues for the first quarter of 2008 were approximately 65 percent higher than the first quarter of 2007.
“OPENLANE is the last remaining of the many Internet companies established years ago to pursue the wholesale automotive market, a sector that continues to present a very sizable opportunity. The company has grown by evolving its offering and merging with others and today it is the leading online independent wholesale auto auctioneer,” said Paul Madera, managing director, Meritech Capital Partners.