A vehicle-consignment startup is stepping on the gas pedal – adding motorcycles, eyeing more sites, raising capital and rolling out a joint venture.
CarLotz signed a lease in March for 1,500 square feet adjoining its Midlothian Turnpike lot. The space was formerly home to an Enterprise Rent-A-Car location and will double CarLotz’s footprint at that site, one of three the company runs. (You can read more about their growth here and here.)
CEO Michael Bor said the added space will be dedicated to selling used motorcycles. And the spring offensive doesn’t end there: Bor also said that in June CarLotz will look to raise $3 million to $5 million and will open at least one more location this year. That’s in addition to the $2 million CarLotz has raised so far.
“We’re looking at Fredericksburg, Virginia Beach and North Carolina,” Bor said. “We don’t necessarily have an order. We’re being opportunistic with the space we find.”
CarLotz is also expanding into the commercial leasing business.
In February, the startup rolled out a spinoff called Orange Grove, which was formed in tandem with an existing Richmond-based commercial leasing company. Bor said no money changed hands and that the ownership is divided nearly down the middle.
“One of the key drivers of our growth is companies with fleets of vehicles,” Bor said of CarLotz. With Orange Grove, “we have visibility into the whole lifecycle of a vehicle.”
When Orange Grove gets the vehicles it leases back, it either re-leases them or sells them through CarLotz. Today, Orange Grove has 200 cars leased.
CarLotz and Orange Grove are based out of 406 W. Franklin St. in Richmond. CarLotz opened in 2011 its first spot in Midlothian. The company in 2012 added locations in the West End and Chesapeake. CarLotz has 30 employees, up from 20 a year ago.