Beepi's business stalls after burning through millions
February 17, 2017
Beepi, the operator of an online used-car marketplace, has started the process of selling off its assets to pay back debts, according to The Wall Street Journal. Founded in 2013, Beepi set out to streamline the process of buying and selling by offering services such as a mechanic to inspect cars and home delivery. The company would also take care of the transfer of titles, plates and handling of paperwork.
It appears Beepi struggled to find its spot in the market, however. Trouble has been brewing at the company for some time, with news breaking in December that it was shutting down operations outside of California and that it was in merger talks, although those didn’t end up leading anywhere. With the latest news, it looks as if Beepi is close to winding down its business.
The company had raised about $150 million in VC funding from firms such as Redpoint Ventures and Sherpa Capital. It most recently secured a $70 million round in 2015 at a $564 million valuation. Existing investors and employees are not likely to see returns from the sale of assets, per the WSJ.