Vroom recently fund raised $146 million during a Series G round, expanded to a $30 million investment received back in September. The US car retailer AutoNation primarily led the round along with T. Rowe Price, L Catterton, Fraser McCombs Capital, and General Catalyst.
The company declined to disclose the valuation, but says it was an up round. Vroom was valued at $440 million in 2016 with a $50 million financing, according to PitchBook.
Led by chief executive officer Paul Hennessy, the former CEO of Priceline.com, Vroom is an online platform for buying and selling refurbished, pre-owned cars. The company purchases used vehicles, then includes them in its online catalog, which currently lists just over 3,200 cars. Once it finds a buyer, it provides financing support through a number of lending partners, including CapitalOne and Ally, and delivers the vehicle directly to customers’ doorsteps in the U.S. To date, the company says it has sold 250,000 cars.
Founded in 2013, the company has raised $440 million in equity funding to date, but it hasn’t all been smooth sailing. Earlier this year, Vroom laid off roughly 30 percent of its staff after a futile attempt at building brick-and-mortar car dealerships. As a result, Vroom shut down its Dallas dealership, which was where most of the layoffs occurred, Hennessy said. Its Houston dealership is the only in-person effort still up and running.
“Clearly our investors were supportive of the strategic steps we took,” Hennessy told TechCrunch.
Since the layoffs, Vroom has been focused on building out its leadership team. Dave Jones, who spent over a decade at Penske Automotive Group, joined as the company’s chief financial officer; Mitch Berg, who was most recently the senior vice president of technology at dailymotion, was brought on as chief technology officer; and Dennis Looney, a veteran in supply chain management, was tapped as chief supply chain officer.
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