Vroom, a US-based second-hand automotive marketplace backed by car dealership chain AutoNation, closed a $254m series H round on Friday led by investment advisory firm Durable Capital Partners.
L Catterton, a private equity affiliate of luxury consumer goods conglomerate LVMH, also took part in the round, as did funds and accounts advised by T. Rowe Price Associates, and undisclosed other investors.
Founded in 2013, Vroom has built a data-driven, end-to-end online platform that facilitates all aspects of selling, buying, insuring and financing reconditioned vehicles.
Sellers benefit from real-time appraisals and are offered market-based pricing. Should they go forward with a sale they can receive payment within minutes, and Vroom offers a complementary pickup and delivery service for cars.
The company also operates a network of used car dealerships in the state of Texas under the brand name Texas Direct Auto.
The capital will enable Vroom to improve its technology and product development, boost headcount and enhance operations and marketing activities. Money has also been allocated to growing a recently opened product and engineering hub in the city of Detroit.
Vroom said it has now secured $721m in overall funding. AutoNation led a $146m series G round in December 2018, with contributions from L Catterton, General Catalyst, Fraser McCombs Capital, accounts advised by T. Rowe Price and assorted private investors.
The company’s earlier backers include New Horizons, Pico Venture Partners, Altimeter Capital, Foxhaven Asset Management and Allen & Company.
