🚗 Expansion into Germany
Carvago, a leading digital used-car retailer, has acquired InstaMotion, a major online car dealer in Germany. This move marks a significant expansion for Carvago in the DACH region, which includes Germany, Austria, and Switzerland. "InstaMotion has a similar business model to Carvago," said Jakub Šulta, CEO of EAG Group. This acquisition strengthens Carvago's presence in Germany, where it started operations in November 2021. InstaMotion, founded in 2016, shifted to an asset-light model in 2019 and has grown over 25% annually since.
💼 Strategic Acquisition
The acquisition aligns with EAG Group's strategy to dominate the online used car market. InstaMotion had filed for insolvency in May, but with Carvago's support, it aims to bounce back. "It was clear from the start that Carvago had a lot to offer InstaMotion and vice versa," said Dr. Nikolas Dešković, who will continue as CEO of InstaMotion. The acquisition, completed in June, was funded by EAG Group's investment capital.
🔍 Business Synergies
Carvago and InstaMotion will operate separately but leverage synergies to enhance their offerings. InstaMotion, known for its strong dealer relationships and quality standards, will benefit from Carvago's CarAudit service. InstaMotion offers 24,000 premium used cars with a maximum age of seven years and less than 130,000 km. "We believe that the right mix can be beneficial for both Carvago and InstaMotion customers," Šulta added.
🚀 Future Prospects
EAG Group's acquisition of InstaMotion is a long-term strategic move. Pavel Svoren, EAG board member, stated, "We began exploring cooperation or acquisition opportunities two years ago." InstaMotion exceeded €80M in sales last year, with expectations to break even by 2024. The acquisition is expected to boost Carvago's market presence significantly. "After a period of uncertainty, we are back in the game," Dešković said, emphasizing the positive outlook for the combined business.
Will Carvago's acquisition improve its market position?
