Total amount raised
$1.3 Billions
Latest funding date
09/01/2020
Location
Vroom has successfully raised significant funding through multiple rounds, with its last funding round being a Post-IPO Equity round closed on September 10, 2020. The company has garnered the support of 17 investors, including notable names like Hesham Zreik and Poalim Equity.
Despite halting its used vehicle operations as of January 22, 2024, Vroom's subsidiaries, United Auto Credit Corporation (UACC) and CarStory, continue to operate and focus on growth. Keep reading to explore the intricacies of Vroom's fundraising journey and the investors backing this evolving platform.
What Is Vroom?
Vroom, founded in 2013, is an innovative e-commerce platform specializing in the automotive industry. Headquartered in Houston, Texas, with additional operations in New York City, the company was established by Allon Bloch, Elie Wurtman, Kevin Westfall, Marshall Chesrown, and Scott Chesrown.
With a workforce of 501-1000 employees, Vroom has revolutionized the way consumers buy and sell used vehicles through its data-driven technology. Although it halted its used vehicle operations in January 2024, its subsidiaries, United Auto Credit Corporation (UACC) and CarStory, continue to thrive and focus on growth.
How Much Funding Has Vroom Raised?
- Series A
- Amount Raised: $7.3M
- Date: July 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company's initial operations and market presence.
- Series B
- Amount Raised: $12M
- Date: November 2014
- Lead Investors: PICO Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's market reach and enhance its technology platform.
- Series B
- Amount Raised: $54M
- Date: July 2015
- Lead Investors: PICO Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase inventory.
- Series C
- Amount Raised: $95M
- Date: December 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand market presence and improve customer acquisition strategies.
- Series E
- Amount Raised: $50M
- Date: September 2016
- Lead Investors: T. Rowe Price
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and expand the customer base.
- Series F
- Amount Raised: $103M
- Date: December 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and improve logistics.
- Series G
- Amount Raised: $146M
- Date: December 2018
- Lead Investors: AutoNation
- Valuation at Round: $715M
- Motivation Behind the Round: To enhance key technologies, expand customer acquisition efforts, and build the management team.
- Series H
- Amount Raised: $254M
- Date: December 2019
- Lead Investors: Durable Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth initiatives and enhance the technology platform.
- Post-IPO Equity
- Amount Raised: Not specified
- Date: June 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and strategic initiatives.
- Post-IPO Equity
- Amount Raised: $588.6M
- Date: September 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen the company's financial position and support future growth.
Total Amount Raised: $1.46B. Current Valuation: $715M.
Key Investors
- AutoNation
- Details: AutoNation is the largest chain of brick-and-mortar used and new car dealerships in the United States. It is a publicly traded company.
- Investment Focus Areas: Automotive retail, used and new car sales.
- Notable Investments: Primarily involved in automotive retail and services.
- T. Rowe Price Associates, Inc.
- Details: T. Rowe Price Associates, Inc. is an investment management firm that provides mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial intermediaries.
- Investment Focus Areas: Broad investment management across various sectors.
- Notable Investments: Known for a wide range of investments across different sectors.
- L Catterton
- Details: L Catterton is a private equity firm focused on middle-market consumer companies.
- Investment Focus Areas: Consumer-focused companies, middle market.
- Notable Investments: Peloton, Restoration Hardware, Equinox.
- General Catalyst Partners
- Details: General Catalyst Partners is a venture capital firm that invests in early-stage and growth-stage companies.
- Investment Focus Areas: Early-stage technology, growth-stage technology.
- Notable Investments: Airbnb, Stripe, Snap.
- Fraser McCombs Capital
- Details: Fraser McCombs Capital is a venture capital firm that invests in automotive and transportation technology companies.
- Investment Focus Areas: Automotive technology, transportation technology.
- Notable Investments: Lyft, Smartcar.
What's Next for Vroom?
Vroom's future is brimming with opportunities, particularly in enhancing key technologies and expanding customer acquisition efforts. With a substantial $146 million raised in Series G funding, the company is well-positioned to leverage these opportunities and build a robust management team to drive strategic initiatives.
As the online auto retail industry continues to grow, Vroom's focus on technology and process enhancements will be crucial. The company may attract further investments if it demonstrates effective use of current funds and positive growth. However, challenges such as high operational costs and competition from other retailers remain significant hurdles.
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