Copart Raises $108 Million in Equity

Cellphone with Copart logo
Cellphone with Copart logo | Image by T. Schneider/Shutterstock

Copart Inc., a Dallas-based online auto-auctions company, has raised more than $100 million in capital, the company revealed in a Form D filing earlier this month.

According to the filing with the Securities and Exchange Commission, Copart has raised $108 million in equity from 13 investors.

The fundraising, which was stipulated as “being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer” on the filing, comes the same month Copart announced a new strategic investment in Purple Wave.

Copart did not respond to requests for comment in regards to the capital influx’s relationship to the transaction.

Purple Wave is an online heavy-equipment auction company, while Copart sells vehicles for insurance companies, banks, finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals.

“We have long admired Purple Wave as a leader in this space,” Jeff Law, co-CEO of Copart, said in a news release related to the latest round of investment in the company. “Their digital-first approach and strong community of sellers and buyers distinguishes them in their industry and has empowered their outsized growth for years.”

Copart expects to leverage its “areas of expertise” through the new investment and partnership with Purple Wave.

“This is a pivotal moment for Purple Wave,” Aaron McKee, CEO of Purple Wave, said in a prepared statement. “We are amplifying the strengths of both companies through this partnership and believe Copart will help accelerate Purple Wave’s expansion from a regional business into a global enterprise.”

Purple Wave, which is based in Manhattan, Kansas, was founded in 2000. It facilitates the sale of construction, agriculture, and fleet equipment directly from sellers’ locations through its no-reserve auction platform, according to the company’s website. Purple Wave also provides such services as appraisals, listings, marketing, and post-auction shipping.

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