1. News
December 9, 2019

E-commerce platform Vroom closes Series H funding round with $254m

Online used car retailer Vroom has concluded a Series H funding round with $254m, increasing its total capital raised to $721m.

Online used car retailer Vroom has concluded a Series H funding round with $254m, increasing its total capital raised to $721m.

The Durable Capital Partners-led financing was joined by funds and accounts advised by T Rowe Price Associates, L Catterton and more.

The company will invest the new funding in its people, technologies, products, operations and marketing.

Vroom has specifically planned to use the investment to expand its newly established Detroit-based product and engineering hub.

Chosen due to the availability of skilled tech, design and product talent, Vroom’s Detroit facility is expected to recruit more staff in product and engineering areas next year.

The company is also working to bring all phases of the vehicle buying and selling process to consumers online.

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Vroom CEO Paul Hennessy said: “This new round of funding provides the necessary resources to further grow and scale our business.

“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.”

Established in 2013, Vroom uses a data-driven technology platform that enables consumers to sell or buy vehicles from anywhere.

The company offers low-mileage, reconditioned vehicles and delivers directly to the customers. It has also sold 250 thousand cars so far.

Vroom has recently entered a strategic, preferred lending partnership with Chase Auto to offer a simplified financing experience for consumers.