Allianz is pulling the plug on Abracar at the end of May. The insurance group's spin-off, founded in 2016, failed to find a strategic investor. Just two years ago, Allianz invested €11.5 million in the used car startup.
How German startups first reported, Allianz X, the investment arm of the Munich insurance giant, presents the startup Abracar In response to a request from the news site, Allianz X stated:
"Allianz X regularly reviews its portfolio of investments and related service offerings. In our role as Allianz's strategic investment company, we have concluded that the strategic and economic contribution of Abracar to Allianz's core business has remained manageable. Therefore, we have decided not to make any further investments in the development of Abracar and to discontinue the offering. Business operations will cease completely on May 31, 2020. Liquidation is expected to be completed in spring 2021. Allianz is approaching its withdrawal from this business responsibly. We are steadily winding down the business and will continue to receive strong support from the team and the company's founders. We are grateful for this."
About half a year ago, founder and managing director Orhan Köroglu in the Interview with Munich Startup still very confident:
"Since our founding, we have become Germany's largest private-to-private vehicle broker in a very short time. We couldn't have imagined this success three years ago. With record growth in the first half of the year, we expect to achieve more than 7,500 vehicle sales in 2019. This means that Abracar brokered a total vehicle volume of over €100 million in 2019 and ranks among the top 30 used car dealers in Germany."
Corona crisis prevented investor from entering Abracar
The reason for the discontinuation of Abracar is apparently a deal with a strategic investor that fell through due to the coronavirus crisis. As Deutsche Startups reports, the startup sought and found a strategic investor with the support of Allianz X. However, the deal could not be completed before the coronavirus crisis hit and subsequently fell through. Allianz X subsequently decided to discontinue the Munich-based startup.
The insurance company was obviously very serious about its commitment to Abracar. June 2018 Allianz invested 11.5 million in the used car marketplace.
