CARiD secures $35m to fuel expansion

CARiD, a leading Ecommerce platform for car parts and accessories, has successfully concluded a $35 million majority stake sale. This achievement underscores the company's resilience, innovation, and effective implementation of its strategic turnaround plan. The investment will be used for further growth, technological enhancements, and improved customer service, reinforcing CARiD’s leadership in the automotive Ecommerce sector.

Transaction Snapshot

  • Deal Value: $35 million
  • Deal Type: Majority stake sale
  • Investors: Fifth Star, Inc.

Founded in 2008, CARiD has become a prominent platform for automotive parts and accessories, serving a broad range of automotive needs. The company is known for its expert advice and personalised customer support. Fifth Star, Inc., an entity involved with consumer technology businesses, acquired a majority stake in CARiD with its $35 million investment. This move signifies strong confidence in CARiD's business model, growth strategy, and dedication to the automotive community. The investment arrives at a pivotal moment, with the average age of cars on U.S. roads reaching new highs, thus driving demand in the automotive aftermarket industry.

The $35 million in funding will be strategically invested in several key areas. CARiD plans to expand its product offerings to include the latest in automotive parts and accessories, enhancing the online platform with advanced features and capabilities, such as AI and machine learning for personalised recommendations. Additionally, the company aims to improve its customer service to ensure unparalleled support and advice is provided. Competitive pricing and maximising value for customers will be achieved through strategic data science and streamlined supply chain management, emphasising affordability without compromising on quality.

Lev Peker, CEO of iD Auto, the parent company of CARiD, stated, "This funding positions CARiD to accelerate our growth, innovate further, and continue improving the way people shop for car parts and accessories." He attributed this success to the team's hard work and the loyal support of their customers. With a clear trajectory for growth and innovation in the auto parts market, CARiD is poised for significant expansion and success.

📌 If you want more of this, don't forget to subscribe to our newsletter - Deals & Data, where we share the latest M&A industry news, macro trends and insights in our weekly roundup.

Back to blog