German start-up Auto1 gets 460 mln-euro investment

BERLIN, Jan. 15 (Xinhua) -- The German online car dealership Auto1 has received 460 million euros (565 million U.S. dollars) from Japanese technology giant Softbank via its in-house "Vision" investment fund, the two firms told press on Monday.

The transaction values Berlin-based Auto1 at 2.9 billion euros in total, making it the second-most-valuable start-up in Europe after Swedish music-streaming service Spotify.

The online car dealership was founded in 2012 and currently sells more than 40,000 vehicles each month in 30 countries, according to its management.

A spokesperson said that Softbank's cash injection will grant the Japanese firm a 20 percent share of Auto1 while enabling the German start-up to progress with its international expansion.

The transaction marks the first time that the 93 billion-dollar "Vision" fund becomes active in Germany. The fund has so far focused its attention on robotics and mobility firms including the troubled U.S. cab-hailing app Uber most.

Auto1 co-founder and co-chief Hakan Koc said that his company fitted into this strategy well given its efficient use of large databases to help overcome the fragmentation of the used vehicles market. Softbank manager Akshay Naheta will join the Start-up's supervisory board as part of the deal. Enditem