Online Car Retailer Vroom Raises $146 Million Series G Funding Round
NEW YORK--(BUSINESS WIRE)--Dec 11, 2018--Vroom ( www.vroom.com ), the national online auto retailer, today announced a $146 million Series G funding round led by AutoNation. Funds and accounts advised by T. Rowe Price Associates, Inc., L Catterton, General Catalyst Partners, Fraser McCombs Capital and individual investors also participated in the round.
Vroom is turning the used-car industry on its head with its online platform, direct-to-consumer fulfillment model and private-seller service. Focused on providing an easy, seamless experience, Vroom offers thousands of low-mileage, reconditioned vehicles with delivery directly to consumers.
“We are incredibly encouraged by this recent round of funding as investors, including those in the traditional auto retail space, continue to recognize that the Vroom model is the way of the future,” said Vroom CEO Paul Hennessy. “We’ve proven we can deliver an excellent product and service to consumers across the country and we are now positioned for significant growth.”
“Vroom continues to demonstrate progress towards truly disrupting this industry at scale,” said Henry Ellenbogen, portfolio manager at T. Rowe Price Associates, Inc. “The fact that the largest auto retailer in the country is now backing Vroom speaks to the quality of the execution of the company’s management team and what we believe is the company’s ability to become much larger over time.”
Vroom will use this new round of investment to enhance key technologies and processes, expand customer acquisition efforts and continue to build a world-class management team. Vroom recently partnered with renowned design firm Pentagram to give the company’s branding a fresh, new look and worked with leading advertising agency Anomaly to produce an integrated ad campaign running in select U.S. markets. Recent hires include Chief Financial Officer Dave Jones, who spent over a decade at Penske Automotive Group; Chief Supply Chain Officer Dennis Looney, who brings experience from Office Depot and Home Depot; and Chief Technology Officer Mitch Berg, who brings a wealth of experience in building seasoned technology and engineering teams.
“Although Vroom has been bringing the car buying and selling experience online for years, the company is now ready to make a meaningful run at this $750 billion plus category,” said Vroom CFO Dave Jones. “I’m excited to join Vroom at a time when we have significant investment and talent on board and are ready to bring the business to the next level.”
Beyond its simplified purchase process, Vroom’s private-seller acquisition model allows customers to receive cash offers in minutes, with free pickup of their vehicles at their homes. Vroom’s end-to-end experience also includes financing and warranty and insurance products.
For more information, visit vroom.com.
Vroom’s focus is making it easy for consumers to make the car they want, the car they drive. A national online auto retailer, Vroom offers thousands of low-mileage, reconditioned vehicles with delivery directly to consumers. Vroom’s seamless private-seller acquisition service allows customers to receive cash offers for their vehicles in minutes. The company is based in New York and Houston. Vroom also operates the Texas Direct Auto brand. For more information, visit vroom.com.
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CONTACT: Moxie Communications Group
Alyssa Galella, 562-294-6261
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: ONLINE RETAIL AUTOMOTIVE AFTERMARKET OTHER AUTOMOTIVE RETAIL GENERAL AUTOMOTIVE
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PUB: 12/11/2018 07:15 AM/DISC: 12/11/2018 07:15 AM