Drivin, a Chicago startup launched by Groupon founders Brad Keywell and Eric Lefkofsky, has sold to a major car auction company for $43 million in stock.
KAR, a Carmel, Indiana-based used car auction services company, announced Wednesday it has acquired Drivin and will use the startup to help expand its product offerings.
Drivin's CEO Kayne Grau and COO Justin Mahlik will remain with KAR as president and COO, respectively. The company will remain in its Chicago location.
Drivin was founded in 2015 and is a tool for car dealerships to sell, source and acquire vehicles for their lots. It uses data analytics to show dealerships what vehicles they should acquire based on what's likely to sell. Drivin then buys the car and delivers it to the dealer, saving them from wasting time at vehicle auctions and buying makes and models that won't sell.
Drivin raised over $17 million in equity from investors such as Lightbank and Columbus Nova Technology Partners, and another $6.5 million in debt from Silicon Valley Bank.
“Translating the power of data into actionable insights is a strategic imperative for KAR. It’s what our customers need and expect,” Jim Hallett, chairman and CEO of KAR, said in a statement. “DRIVIN has quickly earned the reputation as a disruptor, and its robust data science capabilities are highly sought after in the industry. KAR and DRIVIN will help accelerate the delivery of innovative new solutions to our diverse customers.”
Drivin is located at 600 W. Chicago along with Lefkofsky and Keywell's other ventures Groupon, Lightbank, Uptake and Tempus.
