Vroom, an ecommerce platform for buying and selling used vehicles that has a product and engineering hub in Detroit, has closed a $254 million Series H funding round, bringing the company’s total capital raised to $721 million. The company has offices in New York and Texas.
The company plans to use the funds to invest in its people, technology, product, operations, and marketing, and particularly to expand its Detroit hub. Opened in August, Vroom chose Detroit due to its pool of skilled tech, design, and product talent, as well as its automotive legacy. The office is expected to significantly increase its product and engineering staff in 2020.
“This new round of funding provides the necessary resources to further grow and scale our business,” says Paul Hennessy, CEO. “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.”
Vroom has created a technology platform that brings all phases of the vehicle buying and selling process online. It offers thousands of low-mileage, reconditioned vehicles with delivery directly to customers. It also arranges financing through lenders and offers warranty, insurance, and other products.
The company recently partnered with Chase Auto, and Vroom’s Sell Us Your Car offers customers who wish to sell or trade in their vehicles real-time appraisals, market-based pricing, loan payoffs, and at-home vehicle pickup.
The round was led by Durable Capital Partners LP with participation from funds and accounts advised by T. Rowe Price Associates Inc., L Catterton, and others.