Auto marketplace HeyCar has received an undisclosed investment from Renault Group and its subsidiary RCI Bank and Services, a France-based group that focuses on automotive financing and services.
“With Renault Group, we are acquiring an equity stake in Mobility Trader Holding GmbH that created the online used car sales platform HeyCar in Germany, United Kingdom and Spain,” RCI Bank and Services announced in a Tweet.
The transaction is expected to closed in the fourth quarter subject to compliance with French regulations.
The new backers got into the list of shareholders including Volkswagen Financial Services, Volkswagen AG and Daimler Mobility Services.
Berlin-based HeyCar launched in 2017, competing for market shares dominated by Mobile.de and AutoScout24.
With a b-to-c model, it has a vast network of dealers across 5,000 locations. Its gross profit reached €1.6 million ($1.9 million U.S.) in 2019, according to a trade magazine kfz-betrieb.
With the new funding, HeyCar will expand in France where it will join forces with c-to-c auto vertical Carizy, which was acquired by Renault in 2018.
“Through this partnership we intend to strengthen the competitiveness of our sales network across the entire used vehicle value chain: from procurement to after-sales, including reconditioning, marketing and sales of financing and services,” said Renault Group CEO Luca de Meo in a statement.