Automotive retailer AutoNation led a $146m series G round for US-based used vehicular e-commerce platform Vroom on Tuesday that took its total funding to $440m.
L Catterton, the private equity affiliate of luxury consumer goods conglomerate LVMH, also participated in the round, as did General Catalyst, Fraser McCombs Capital, accounts advised by T. Rowe Price Associates including its New Horizons Fund, and assorted individual investors.
AutoNation’s contribution to the round consisted of a $50m investment in October this year. The company was valued at $665m as of its last funding round in July 2017, when it raised $76m from New Horizons, L Catterton, General Catalyst and Pico Venture Partners.
Founded in 2013, Vroom operates an online platform that enables consumers to sell, buy, finance and insure low-mileage, reconditioned cars. The company pays sellers within minutes and offers a pickup and delivery service for cars bought on the platform.
Vroom will use the cash to enhance its technologies and processes, strengthen its market position and recruit additional management, having recently hired chief financial, chief supply chain and chief technology officers.
Altimeter Capital, Foxhaven Asset Management, Allen & Company and Pico Venture Partners are among Vroom’s existing shareholders, as are angel investors including Steve Berrard, a co-founder of AutoNation who invested when the company was still in stealth mode.
Paul Hennessy, chief executive of Vroom, said: “We are incredibly encouraged by this recent round of funding as investors, including those in the traditional auto retail space, continue to recognise that the Vroom model is the way of the future.
“We have proven we can deliver an excellent product and service to consumers across the country and we are now positioned for significant growth.”
