Tekion, a US-based provider of sales software for car dealerships, collected $250m in series D financing yesterday from investors including carmaker Hyundai Motor Company at a valuation of $3.5bn.
The round was co-led by Alkeon Capital and Durable Capital with backing from Advent International, Index Ventures and FM Capital as well as several undisclosed car dealer groups across the US.
Founded in 2016, Tekion offers a cloud-native automotive retail platform, Automotive Retail Cloud (ARC), which digitises the management of car dealerships, connecting dealers with equipment manufacturers, providing data and optimising customer service.
Tekion intends to use the capital to accelerate the rollout of its platform to dealers across the US and globally, set up a customer experience center and expand product innovation hubs in the cities of Pleasanton and Austin, focusing on continuous product innovation.
The company had previously raised $150m in an October 2020 series C round backed by Airbus Ventures, the investment arm of aerospace manufacturer Airbus. It was led by Advent International and also featured Exor, the holding company that controls automotive manufacturers Fiat Chrysler and Ferrari, as well as FM Capital, Index Ventures and Joe Serra.
Alliance Ventures, the investment partnership between carmakers Renault, Nissan and Mitsubishi, had injected an undisclosed amount of funding in Tekion in January 2019. It had already received a total of $65m from investors including Exor, Index Ventures, Storm Ventures and AME Cloud Ventures.