Vroom Raises $50 Million in Latest Funding Round
Vroom announced the completion of a $50 million Series E funding round with new investors Altimeter Capital and Foxhaven Asset Management. The new financing brings Vroom’s total funding to $218 million since its founding in 2013.
NEW YORK — Online pre-owned retailer Vroom announced the completion of a $50 million Series E funding round with new investors Altimeter Capital and Foxhaven Asset Management. They join 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 its founding in 2013. The company continues to deliver strong revenue growth, with officials expecting the firm to generate more than $1 billion in revenue this year.
“The reaction to both the ease of car buying and selling experience, as well as the unparalleled quality of refurbished cars has been overwhelming,” said Hennessy, who joined the company as CEO this past June. “For a company that is only three years old, we are just beginning to roll out our product innovations that will soon include 100% digital paperwork and auto financing enhancements.”
Vroom is attempting to redefine the way cars are bought and sold by bringing the entire process online and on mobile. Car sellers simple scan the VIN, submit pictures of their vehicle and answer a few questions for an instant cash voucher, while car buyer can search and buy from one of the largest selections of pre-owed cars on a desktop computer or mobile device. Both buyers and sellers get free car pickup and delivery, respectively. Car buyers also benefit from a seven-day money-back guarantee.
“Vroom is positioned to be a leader in the online used-car market by revolutions 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.”
F&I and Showroom featured Vroom in the magazine’s October 2015 issue. To read the article, click here.
More Auto Finance
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →