Total amount raised
$635.1 Million
Latest funding date
7/1/2024
Location
Tekion has successfully raised funds over seven rounds, with the latest being a Private Equity round. The company is backed by 19 investors, including notable names like Dragoneer Investment Group and Hyundai Motor Company.
Tekion's cloud-native platform, powered by AI, is designed to revolutionize the automotive retail industry. Keep reading to explore the intricacies of Tekion's fundraising journey and the investors backing this innovative platform.
What Is Tekion?
Tekion is a private company based in Pleasanton, California, specializing in automotive retail technology. The company employs between 1001 and 5000 people and leverages advanced technologies like AI, Big Data, and Machine Learning to revolutionize the automotive retail industry.
Founded to create the first cloud-native platform for automotive retail, Tekion offers a range of products including Dealer Management Systems (DMS), Customer Relationship Management (CRM), and Digital Retail solutions. Their platform aims to enhance consumer experiences, increase profitability, and ensure robust security and compliance standards.
How Much Funding Has Tekion Raised?
- Seed Round
- Amount Raised: USD 3,100,000
- Date: March 2016
- Lead Investors: Storm Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of Tekion's cloud-native platform and establish a foothold in the automotive retail technology market.
- Series A
- Amount Raised: USD 10,000,000
- Date: January 2017
- Lead Investors: Index Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and expand the team to accelerate product development.
- Series B (First Round)
- Amount Raised: USD 22,000,000
- Date: July 2018
- Lead Investors: BMW i Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform capabilities and expand market reach.
- Series B (Second Round)
- Amount Raised: Not publicly disclosed
- Date: January 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling operations and support ongoing product development.
- Series C
- Amount Raised: USD 150,000,000
- Date: October 2020
- Lead Investors: Advent International
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand the platform's features and integrations.
- Series D
- Amount Raised: USD 250,000,000
- Date: October 2021
- Lead Investors: Alkeon Capital, Durable Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid expansion and enhance customer support capabilities.
- Private Equity
- Amount Raised: USD 200,000,000
- Date: July 2024
- Lead Investors: Dragoneer Investment Group
- Valuation at Round: Over $4 billion
- Motivation Behind the Round: To expand product offerings, accelerate implementation timelines, and enhance customer support.
Total Amount Raised: USD 635,100,000. Current Valuation: Over $4 billion.
Key Investors
- Dragoneer Investment Group
- Details: Dragoneer Investment Group is a growth-oriented investment firm with over $23 billion under management. They have a flexible mandate to invest in high-quality businesses in both public and private markets.
- Investment Focus Areas: High-growth companies, technology, innovative solutions.
- Notable Investments: Airbnb, DoorDash, Snowflake.
- Index Ventures
- Details: Index Ventures is a venture capital firm that invests in technology-enabled companies across various stages of growth. They have a strong track record in supporting innovative startups.
- Investment Focus Areas: Technology, software, consumer internet.
- Notable Investments: Dropbox, Slack, Robinhood.
- Advent International
- Details: Advent International is a global private equity firm with investments across various sectors. They focus on partnering with management teams to drive growth and operational improvements.
- Investment Focus Areas: Technology, healthcare, industrial.
- Notable Investments: Lululemon, Olaplex, Sovos Brands.
- BMW i Ventures
- Details: BMW i Ventures is the venture capital arm of BMW, focusing on investments in the automotive and mobility sectors. They support startups that are shaping the future of mobility.
- Investment Focus Areas: Automotive, mobility, technology.
- Notable Investments: ChargePoint, RideCell, Xometry.
- Storm Ventures
- Details: Storm Ventures is a venture capital firm that invests in early-stage enterprise software companies. They have a history of supporting startups through their growth phases.
- Investment Focus Areas: Enterprise software, SaaS, technology.
- Notable Investments: Marketo, MobileIron, Workato.
What's Next for Tekion?
Tekion stands at the cusp of a transformative era in automotive retail, driven by opportunities to enhance efficiency and profitability. With a valuation exceeding $4 billion and a recent $200 million investment, the company is poised to expand its product offerings and accelerate implementation timelines. The integration of cutting-edge technology, big data, and AI positions Tekion to lead the shift towards digital-first, frictionless experiences in the automotive industry.
Future fundraising opportunities appear promising, given the strong investor confidence and rapid revenue growth. Tekion's partnerships with over 2,000 automotive retailers and 250 technology partners underscore its market potential. However, challenges such as maintaining rapid growth, ensuring robust security, and staying ahead of technological advancements will be critical. As Tekion navigates these complexities, its strategic focus on innovation and customer support will be key to sustaining its upward trajectory.
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