1. News
September 20, 2016

US online used car retailer Vroom raises $50m

US-based online used car retailer Vroom has raised $50m through a Series E funding round.

US-based online used car retailer Vroom has raised $50m through a Series E funding round.

Altimeter Capital and Foxhaven Asset Management have joined the list of existing investors, which includes L Catterton, General Catalyst Partners, Allen & Company, and funds and accounts advised by T. Rowe Price Associates.

The latest round of funding takes the current total to $218m.

“We are just beginning to roll out our product innovations that will soon include 100% digital paperwork and auto financing enhancements."

Vroom CEO Paul J Hennessy said: “The reaction to both the ease of the car buying and selling experience, as well as the unparalleled quality of refurbished cars, has been overwhelming.

 “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.

"The continued support of our incredible board led by chairman Bob Mylod, the vote of confidence from our existing investors and the addition of two new world-class investors to our capital base gives us the firepower we need to achieve our goal of becoming the largest pre-owned car retailer in the nation.”

Vroom enables the entire process of buying and selling used cars through online and mobile channels.

Car sellers need to scan the VIN, submit pictures of their car and answer a few questions for an instant cash voucher. Car buyers, from the comfort of their home, can search through a large selection of pre-owned cars.

Both buyers and sellers get free car pickup and delivery, respectively.

Vroom also offers car buyers the benefit from a seven-day money back guarantee, replacing the traditional test drive.

The company expects to generate excess of $1bn of revenue this year.