Online used car retailer Vroom secures $254 million Series H funding round to accelerate growth
Vroom, an automotive startup and online direct car retailer that simplifies car-buying experience, has closed $254 million Series H funding to further grow its e-commerce platform. The round, which was led by Durable Capital Partners LP, with participation from funds and accounts advised by T. Rowe Price Associates, Inc., L Catterton and others, brings total capital raised to $721 million. The latest funding is a testament to investors’ trust in the company and also underscores Vroom’s momentum in disrupting the retail used vehicle business.
Founded in 2013 by Kevin Westfall, Marshall Chesrown, and Scott Chesrown, the New York City-based Vroom is an online platform that enables individuals to buy, sell, and trade-in refurbished used cars in the United States. Its smartphone application allows its users to filter their searches by body type, year, price, mileage, and make, and get the purchased car delivered right to their doorsteps. The company also helps its customers find the right financing option with the best rates from among their partner banks. Users can browse through to find a suitable car and get it delivered to their homes for a seven-day test drive before purchasing their own vehicle.
“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.”
“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,” said 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.”
Through its ecommerce platform, Vroom offers thousands of low-mileage, reconditioned vehicles with delivery directly to consumers. It also arranges financing through leading lenders and offers warranty, insurance and other value-added products that provide convenience for its customers. Vroom recently announced a strategic, preferred lending relationship with Chase Auto, designed to bring unique value to both companies’ customer bases. In addition to offering consumers a better way to buy a car, Vroom’s Sell Us Your Car® offering 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.