After surge in e-comm biz, online used car seller Vroom files to go public

Online used car seller Vroom Inc filed for a US initial public offering on Monday, at a time when the coronavirus-led restrictions are shifting consumer spending to online platforms.

The company said it saw a huge surge in its e-commerce business, with the unit's revenue rising 160% in the first quarter of 2020.

Auto retailers have been slow to embrace e-commerce, but the Covid-19 pandemic is forcing dealers to turn to digital tools to close deals without a handshake and arrange for vehicles to be picked up or delivered without requiring customers to visit stores.

Vroom's rival Carvana Co , which went public in 2017 at $ 15, plunged nearly 80% from a record closing high of $ 110.09 on Feb. 21 to a March low of $ 22.19 amid a broader market selloff, before recovering. The stock is up 7% so far this year at $ 98.6.

Net loss attributable to Vroom's common stockholders narrowed to nearly $ 41.1 million in the first quarter ended March 31, compared with $ 45.1 million a year earlier. First-quarter revenue jumped nearly 60%, it said in a regulatory filing.

In 2019, total revenue rose to $ 1.19 billion (976 million pounds) from $ 855.4 million in 2018.

The company plans to list its shares on the Nasdaq Global Market under the symbol "VRM".

Goldman Sachs, BofA Securities, Allen & Co and Wells Fargo Securities are among the lead underwriters of the offering.