Online Pre-Owned Car Retailer Vroom Raises $50 Million
Vroom (www.vroom.com), the online pre-owned car retailer, announced the completion of a $50 million Series E funding round with new investors Altimeter Capital and Foxhaven Asset Management, joining 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 inception.
The company’s continued strong revenue growth has been driven by innovation that is leapfrogging the traditional car buying and selling process. Under the recent leadership addition of CEO Paul J. Hennessy, former priceline.com chief executive, Vroom has positioned itself to take advantage of the rapidly increasing consumer preference to purchase and sell cars in smarter, easier ways.
Vroom redefines how cars are bought and sold, by bringing the entire process online and on mobile. Car sellers need only to scan the VIN, submit pictures of their car and answer a few questions for an instant cash voucher. Car buyers can sit comfortably at home, avoiding the high pressure situation of used car salesmen, and search through one of the largest selections of pre-owned cars. Both buyers and sellers get free car pickup and delivery, respectively. Car buyers benefit from a 7-day money back guarantee, which essentially replaces the traditional test drive. The company is expected to generate well in excess of $1 billion of revenue in 2016.
“Vroom is positioned to be a leader in the online used car market by revolutionizing 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.”
In a recent review by Car and Driver magazine, Vroom was noted as the best online car selling tool and consistently outperforms other online pre-owned car retailers. For more information, visit Vroom.com.