Vroom Raises $54 Million Series B Round to Overhaul the Car Buying Experience
Vroom (www.vroom.com), the largest online pre-owned car retailer, today announced a $54 million Series B funding round, bringing its total equity funding to date to $73 million. The investors in the round are Catterton (investors in major consumer retail brands such as Restoration Hardware and P.F. Chang's); General Catalyst Partners (investors in Snapchat, Warby Parker and Kayak); and funds and accounts managed by T. Rowe Price Associates, Inc. (investors in Redfin and Workday). Jeffery Boyd, Chairman and former CEO of The Priceline Group, and Bob Mylod, former CFO of The Priceline Group, also participated in the round.
By combining technology with deep automotive industry acumen, Vroom is turning buying and selling cars into an enjoyable process, instead of a chore. Vroom enables customers to easily find impeccably refurbished, pre-owned cars at no-haggle prices below market value, with free delivery to their doorsteps.
"We make it much easier for consumers to find the right car at below market prices by removing fixed costs," said Allon Bloch, CEO of Vroom. "We take great pride in the quality of our reconditioning and we specialize in low-mileage, recent year models with impeccable vehicle history reports."
Vroom provides a 7-day money back guarantee, no questions asked return policy, and a 90-day bumper-to-bumper warranty, coupled with free shipping nationwide.
"What attracted us to Vroom is the opportunity to transform a large industry that has been challenged to deliver great customer service," said Michael Farello, Senior Partner at Catterton. "Vroom is taking a hassle-free and transparent approach to car retailing, and the proposition is resonating with consumers."
Founded less than two years ago in 2013, Vroom is already the largest online car store in the U.S. With nearly $20 million in sales in the month of May alone, the company is on track to reach $300 million in sales in 2015.
"Most of the over $500 billion worth of used cars sold each year are advertised online, but very few involve end-to-end online transactions," said Adam Valkin, Managing Director at General Catalyst. "Customers are demanding this more and more, and Vroom is the emerging leader in this massive market."
"We see parallels to the travel and real estate industries in Vroom's model, particularly with its focus on consumer trust," said Bob Mylod, former CFO of The Priceline Group. "I'm looking forward to joining the Vroom board and helping the company continue to grow as the market leader in the online automotive space."
Vroom CEO Allon Bloch is the former Co-CEO of Wix.com (NASDAQ: WIX) and former CEO of MySupermarket. Elie Wurtman, a serial entrepreneur who co-founded and ran three NASDAQ-traded companies and a former General Partner at Benchmark Capital, serves as Vroom's Chairman. The company previously raised $19 million in Series A equity funding from investors including John Elway, NFL legend and automotive entrepreneur; Steve Berrard, former president of AutoNation and Blockbuster; and the founders of Wix.com.
For more information, visit Vroom.com.
Vroom is the largest online car store in the U.S. It is the only company that helps customers save time, hassle and money by bringing all three aspects of the car buying process – buying, financing and selling – online in an easy, transparent and affordable way. Vroom offers thousands of high quality, refurbished, pre-owned vehicles with free delivery to customers' doors nationwide. Vroom was founded by experienced tech startup veterans and automotive industry experts, and the company is based in New York and Dallas. For more information, visit Vroom.com.
Taryn Langer, 917-703-1146