NEW YORK, NY, National online auto retailer announced a $76 million Series F funding round.
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Vroom (www.vroom.com), the national online auto retailer, announced a $76 million Series F funding round with certain funds and accounts advised by T. Rowe Price Associates, Inc., L Catterton, General Catalyst Partners and PICO Venture Partners. Today's financing brings Vroom's total equity funding to $295 million since inception.
Vroom is disrupting the traditional automotive industry with a direct-to-consumer fulfillment model and a seamless private-seller acquisition service. Under the leadership of CEO Paul J. Hennessy, former priceline.com chief executive, the company has taken a customer-first approach to buying, selling, and trading in vehicles.
"Consumers are begging for a change from the antiquated model of car-buying that we've all been taught is our only option," said Hennessy. "Research shows that less than 1% of people prefer the current car-buying process. That dissatisfaction is why we're investing in a better customer experience, which means greater selection, leading price positioning, and an end-to-end online transaction."
Vroom brings the entire car-buying process online, from financing to purchase. Its private-seller acquisition model allows customers to get a cash offer for their vehicle in minutes. Both buyers and sellers enjoy home delivery and pickup.
"Our national car delivery business is growing at a near triple-digit rate," Hennessy continued. "We've shipped cars to all 50 states. There's a Mercedes-Benz C-Class in Hawaii right now with a Vroom license plate on it. It's clear that the public appetite is there, and I'm very encouraged by the rate of adoption we're seeing."
Beyond its simplified purchase process, Vroom offers customers transparent, no-haggle pricing and a 7-day return window with a money-back guarantee. The company's 3,000+ low-mileage vehicles are thoroughly inspected and reconditioned before being sold. The majority of Vroom's inventory is still under manufacturer warranty.
"Vroom is disrupting the traditional car dealership model," said Henry Ellenbogen, portfolio manager at T. Rowe Price Associates, Inc. "This is a unique early-stage company. It is fundamentally changing the way people buy and sell cars, and it has the management team to build a much larger company."
For more information, visit Vroom.com.
Vroom envisions a world where it's as fun and easy to buy a car as it is to drive one. A national online auto retailer, Vroom offers thousands of low-mileage, reconditioned vehicles with free delivery to customers' doors nationwide. The company is based in New York, Dallas and Houston. Vroom also operates the Texas Direct Auto brand. For more information, visit Vroom.com.