New York-based Vroom has raised $146 million in Series G funding led by AutoNation. Existing investors T. Rowe Price, L Catterton, General Catalyst, and Fraser McCombs Capital also participated in this round.
Led by former Priceline.com CEO Paul Hennessy, Vroom is a platform where users can buy and sell refurbished and pre-owned vehicles. Vroom also buys used vehicles and includes them in its catalog. After a buyer is found, Vroom offers financing options through lending partners such as Capital One and Ally. Then the vehicle is delivered to the customer after the purchase is made.
“We are incredibly encouraged by this recent round of funding as investors, including those in the traditional auto retail space, continue to recognize that the Vroom model is the way of the future,” said Hennessy in a statement. “We’ve proven we can deliver an excellent product and service to consumers across the country and we are now positioned for significant growth.”
Vroom has sold 250,000 cars since launching in 2013. And the company has raised $440 million in funding since then.
“Vroom continues to demonstrate progress towards truly disrupting this industry at scale,” added T. Rowe Price Associates portfolio manager Henry Ellenbogen. “The fact that the largest auto retailer in the country is now backing Vroom speaks to the quality of the execution of the company’s management team and what we believe is the company’s ability to become much larger over time.”
Vroom plans to use the funding to enhance key technologies and processes and expand customer acquisition efforts. Throughout the year, Vroom also made a number of key hires including CFO Dave Jones (spent over ten years at Penske Automotive Group), Chief Supply Chain Officer Dennis Looney (former Office Depot and Home Depot exec), and CTO Mitch Berg.
