Online used car retailer Vroom announced yesterday (July 20) in a press release that it secured $54 million in Series B funding.
Vroom has been buying and selling cars on a national scale since 2013, and in less than two years, it has managed to become the largest online car store in the U.S.
“We make it much easier for consumers to find the right car at below market prices by removing fixed costs,” explained Allon Bloch, CEO of Vroom, in the release. “We take great pride in the quality of our reconditioning, and we specialize in low-mileage, recent year models with impeccable vehicle history reports.”
Among the investors are Catterton, General Catalyst Partners and T. Rowe Price Associates. “What attracted us to Vroom is the opportunity to transform a large industry that has been challenged to deliver great customer service,” Michael Farello, senior partner at Catterton, stated in the press release. “Vroom is taking a hassle-free and transparent approach to car retailing, and the proposition is resonating with consumers.”
Vroom’s hassle-free method includes national free shipping within two days, a seven-day, money-back-guaranteed return policy and a 90-day, bumper-to-bumper warranty.
The money raised during this funding round will go toward purchasing more cars, reported VentureBeat. Currently, Vroom has approximately 1,400 cars in stock. Car sellers can get in touch with Vroom through the company’s website or app.
The online car store is also planning on building more refurbishing centers — ideally one per year. At the moment, Vroom has only one center at its disposal to fix up and store cars. The building covers 22 acres of Texas soil.
Another change that Vroom foresees in its future concerns car delivery. Vroom — which is currently relying on third parties for deliveries — would like to create a delivery network to allow car buyers to receive their vehicle on the day of purchase.
The sales for the month of May amounted to almost $20 million, and the company expects to reach $300 million by the end of the year. After this funding round, the company has reached a total equity funding of $73 million.