Online used car retailer Vroom has reportedly raised $467.5m during its US initial public offering (IPO) amid the coronavirus pandemic.

The retailer, backed by T Rowe Price Associates and L Catterton, sold its 21.25 million shares for $22 each, Reuters reported.

The value is higher compared to the company’s initial marketed range of $18 to $20.

Vroom, which filed for an IPO last month, hired Goldman Sachs Group, Bank of America, Allen & Co and Wells Fargo & Co as lead bookrunners for the offering.

Media reports suggest that Vroom saw its sales jump to more than twofold at its e-commerce business in the first quarter of 2020 as the pandemic restrictions customers switching to online shopping.

The company’s revenue for the first quarter ended on 31 March jumped 60% compared to the same period last year, Reuters reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Net loss attributable to the company’s common stockholders also fell to nearly $41.1m from $45.1m.

Vroom shares will list on the Nasdaq under the symbol “VRM”.

Headquartered in New York, Vroom leverages 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.

In December, Vroom concluded a Series H funding round of $254m, led by the Durable Capital Partners. The funding increased its total capital raised to $721m.

In April, the company also partnered with convenience retail and petroleum wholesale industries technology solution provider PDI to launch new features for retailers and petroleum wholesalers.