Vroom Raises $50 Million in Latest Funding Round
NEW YORK — Online pre-owned retailer Vroom announced the completion of a $50 million Series E funding round with new investors Altimeter Capital and Foxhaven Asset Management. They join previous investors L Catterton, General Catalyst Partners, Allen & Company, and funds and accounts advised by T. Rowe Price Associates Inc.
Today’s financing brings Vroom’s total funding to $218 million since its founding in 2013. The company continues to deliver strong revenue growth, with officials expecting the firm to generate more than $1 billion in revenue this year.
“The reaction to both the ease of car buying and selling experience, as well as the unparalleled quality of refurbished cars has been overwhelming,” said Hennessy, who joined the company as CEO this past June. “For a company that is only three years old, we are just beginning to roll out our product innovations that will soon include 100% digital paperwork and auto financing enhancements.”
Vroom is attempting to redefine the way cars are bought and sold by bringing the entire process online and on mobile. Car sellers simple scan the VIN, submit pictures of their vehicle and answer a few questions for an instant cash voucher, while car buyer can search and buy from one of the largest selections of pre-owed cars on a desktop computer or mobile device. Both buyers and sellers get free car pickup and delivery, respectively. Car buyers also benefit from a seven-day money-back guarantee.
“Vroom is positioned to be a leader in the online used-car market by revolutions car buying and selling,” said Henry Ellenbogen, portfolio manager at T. Rowe Price Associates Inc. “We believe that Vroom’s leadership team has the ingredients necessary to build a much larger company.”
F&I and Showroom featured Vroom in the magazine’s October 2015 issue. To read the article, click here.
Follow @FI_Magazine on Twitter