Vroom operates an online marketplace for buying and selling pre-owned vehicles, controlling inbound acquisition, reconditioning and direct-to-consumer delivery. The business combines inventory sourcing, inspection/refurbishment, logistics, financing partnerships and digital retail tools to provide a frictionless buying experience.
Vroom’s model focuses on convenience home delivery, certification, and returns while using data to price, source and optimize inventory turnover. It targets customers seeking the convenience and selection of online retail in the auto sector.
What Is Vroom and What Does It Do?
Vroom, founded in 2013 by Gabriel Tirador and team (executive founders), is a New York City-based (United States) auto e-commerce and retail company that buys and resells used cars online through an integrated platform.
Vroom employs 1,613 people (as of Dec 31, 2022) and combines inspection, refurbishment, logistics and consumer-facing e-commerce to deliver cars to buyers with warranty and return options.
How Much Funding Has Vroom Raised?
1. Conventional Debt
- Amount Raised: $450M
- Date: March 2020
- Lead Investors: Ally (corporate credit)
- Motivation: Capital to scale inventory and operations.
2. Series H
- Amount Raised: $254M
- Date: December 2019
- Lead Investors: L Catterton (lead), T. Rowe Price (participant)
- Motivation: Expansion and inventory growth.
3. Series G / F / earlier
- Amount Raised: $146M
- Motivation: Build platform, logistics and retail capabilities.
Total Funding Raised: $708M
Latest Funding Date: December 06, 2019 (equity); March 31, 2020 (major debt facility)
Key Investors
1. L Catterton
- Details: Consumer and retail-focused PE investor.
- Investment Focus Areas: Retail, auto retail transformations.
- Notable Investments: Vroom, Peloton.
2. General Catalyst
- Details: Venture firm focused on consumer and marketplace scale-ups.
- Investment Focus Areas: Marketplaces, consumer platforms.
- Notable Investments: Airbnb, Stripe.
Where Is Vroom’s Headquarters?
Vroom is headquartered in New York City, United States, leveraging national logistics and retail partnerships.
What’s Next for Vroom?
Vroom will focus on improving unit economics via sourcing optimization, margin improvement on refurbishment, expanding financing options, and building omnichannel capabilities to win consumers who prefer digital purchasing with robust after-sales support.
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