Investments

Carvana Rival Vroom Raises $146M For Used Car Platform

truebil-india-online-Used-Cars

Online auto retailer Vroom has announced a $146 million Series G funding round led by AutoNation. L Catterton, General Catalyst Partners, Fraser McCombs Capital and individual investors also participated in the round.

Vroom offers thousands of low-mileage, reconditioned used vehicles that are delivered directly to consumers.

“We are incredibly encouraged by this recent round of funding, as investors  including those in the traditional auto retail space  continue to recognize that the Vroom model is the way of the future,” said Vroom CEO Paul Hennessy in a press release. “We’ve proven we can deliver an excellent product and service to consumers across the country, and we are now positioned for significant growth.”

Launched in 2013, Vroom offers customers who buy a car off the platform seven days to test drive the vehicle after delivery, and allows for them to return it if they are not fully satisfied. Sellers can take photos of their vehicles, then enter their VIN numbers through an app to receive a quote on the car value, which is determined through an algorithm.

The company will use this new funding to boost key technologies and processes, expand customer acquisition efforts and continue to build its management team. One of its more recent hires is Chief Financial Officer Dave Jones, who spent over a decade at Penske Automotive Group.

“Although Vroom has been bringing the car buying and selling experience online for years, the company is now ready to make a meaningful run at this $750 billion plus category,” said Jones. “I’m excited to join Vroom at a time when we have significant investment and talent on board, and are ready to bring the business to the next level.”

The company also revealed that it recently partnered with design firm Pentagram to freshen up Vroom’s branding, and worked with advertising agency Anomaly on an integrated ad campaign being shown in select U.S. markets.

——————————

New PYMNTS Study: Subscription Commerce Conversion Index – July 2020 

Staying home 24/7 has consumers turning to subscription services for both entertainment and their day-to-day needs. While that’s a great opportunity for providers, it also presents a challenge — 27.4 million consumers are looking to cancel their subscriptions because of friction and cost concerns. In the latest Subscription Commerce Conversion Index, PYMNTS reveals the five key features that can help companies keep subscribers loyal despite today’s challenging economic times.

TRENDING RIGHT NOW