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Vroom fosters its own homegrown scalable, data-driven technology platform that brings all phases of the vehicle buying and selling process to consumers, wherever they are. The new funding round will be used towards continued investments in its people, technology, product, operations, and marketing
Fremont, CA: New York-based used car retailer Vroom raised USD 254 million in a Series H funding round led by Durable Capital Partners LP, with participation from funds and accounts advised by T. Rowe Price Associates, Inc., L Catterton, and others. With this additional funding, the company's total raised capital stands at USD 721 million. Vroom provides an innovative eCommerce platform that offers a better way to buy and sell used cars. Vroom fosters its own homegrown scalable, data-driven technology platform that brings all phases of the vehicle buying and selling process to consumers, wherever they are. The new funding round will be used towards continued investments in its people, technology, product, operations, and marketing.
The company also plans to rapidly expand its newly established product and engineering hub in Detroit, which was opened in August 2019. Vroom chose Detroit due to the city's vast pool of skilled tech, design, and product talent, as well as its longtime automotive industry legacy. The company is also expected to increase its product and engineering staff at the Detroit Office in 2020. This is to accelerate the investments to bring all aspects of the car buying and selling journey online. This new round of funding provides the necessary resources to grow further and scale our business," said Vroom CEO Paul Hennessy. "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."
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Vroom offers thousands of low-mileage, reconditioned vehicles with delivery directly to consumers through its eCommerce platform. It also provides financial services through leading lenders and provides a warranty, insurance, and other value-added products that provide convenience for its customers. "I've worked with the Vroom team for years, and I'm pleased to announce that it is one of the first companies that my new firm is investing in," said Henry Ellenbogen, CIO at Durable Capital Partners LP. "We're very excited to be a part of the future of automotive retail, and support Vroom in its efforts to move the car buying and selling process online for consumers across the country."
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