- Vroom, an e-commerce platform offering a better way to buy and sell used vehicles, announced a $450 million inventory financing relationship with Ally Financial
Vroom, an e-commerce platform company offering a better way to buy and sell used vehicles, announced a $450 million inventory financing relationship with Ally Financial. And Ally’s new financing is supporting Vroom’s continued national growth. And Ally has provided floor plan financing to Vroom since 2016.
This new agreement doubles the total amount of available credit and is Ally’s first fully committed facility to Vroom. Vroom is based in New York and Houston and also runs the Texas Direct Auto brand.
Ever since 2013, Vroom has been offering thousands of low-mileage and reconditioned vehicles with delivery directly to consumers through its e-commerce platform. And it also arranges financing through lenders and offers warranty, insurance, and other value-added products that provide convenience for its customers.
Back in December, Vroom raised $254 million in Series H funding. With that funding round, the company revealed it would be expanding a product and engineering hub in Detroit.
In the funding announcement back then, the company revealed it has been used by over 250,000 buyers and sellers. And the company saw “triple-digit growth in shipped unit sales” last year compared to 2018.
Vroom is headed up by former Priceline.com CEO Paul Hennessy.
Key Quotes:
“We’re thrilled to be broadening our financing relationship with Ally, so we can expand our offering of thousands of high-quality, affordable vehicles with delivery straight to customers. Car buyers and sellers are turning to e-commerce solutions more than ever, especially right now, and Vroom is well-positioned as we deliver a seamless online experience.”
-Paul Hennessy, Chief Executive Officer at Vroom
“Ally takes great pride in using our extensive auto experience to find solutions that help support our dealer customers, particularly during this difficult time confronting the country and the auto industry. We’re excited to expand our financing relationship with Vroom to continue supporting the innovative eCommerce company’s inventory acquisition efforts and national growth strategy.”
-Doug Timmerman, president of Auto Finance for Ally
