- Vroom, an innovative e-commerce platform that provides a better way to buy and sell used vehicles, announced it raised $254 million in Series H
Vroom — an innovative e-commerce platform that provides a better way to buy and sell used vehicles — announced that it closed a $254 million Series H round of funding led by Durable Capital Partners LP with participation from funds and accounts advised by T. Rowe Price Associates, L Catterton, and several others. Including this round of funding, Vroom has raised a total of $721 million.
With this round of funding, Vroom plans to continue to invest in its people, technology, product, operations and marketing. Plus Vroom plans to rapidly expand its newly established product and engineering hub in Detroit, which was opened in August 2019.
Vroom had selected Detroit due to the city’s wide pool of skilled tech, design and product talent as well as its longtime automotive industry legacy. The Vroom Detroit office is expected to significantly increase its product and engineering staff in 2020.
“This new round of funding provides the necessary resources to further grow and scale our business,” said Vroom CEO Paul Hennessy. “We are thrilled to receive continued support from investors and partners, reinforcing the Vroom model as a tremendous opportunity to bring about a fundamental and enduring change in the used vehicle industry.”
With its e-commerce platform, Vroom offers thousands of low-mileage, reconditioned vehicles with delivery directly to consumers. And it also arranges financing through lenders and offers warranty, insurance, and other value-added products that provide convenience for its customers.
Recently, Vroom announced a strategic preferred lending relationship with Chase Auto, which was designed to bring unique value to both companies’ customer bases. And in addition to offering consumers a better way to buy a car, Vroom’s Sell Us Your Car platform allows customers who wish to sell or trade-in their vehicles to receive real-time appraisals, attractive market-based pricing, hassle-free loan payoffs and convenient, at-home vehicle pickup.
“I’ve worked with the Vroom team for years and I’m pleased to announce that it is one of the first companies that my new firm is investing in,” added Henry Ellenbogen, CIO at Durable Capital Partners LP. “We’re very excited to be a part of the future of automotive retail, and support Vroom in its efforts to move the car buying and selling process online for consumers across the country.”
