Online car retailer Vroom has announced a $76 million Series F financing round led by Israeli venture capital fund PICO Venture Partners and with the participation of General Catalyst Partners, L. Catterton and funds and accounts advised by T. Rowe Price Associates, Inc. The company has raised $295 million to date including the latest financing round.
Vroom was founded in Israel in 2014 by Elie Wurtman and Allon Bloch who was succeeded as CEO by Paul J. Hennessy, the former priceline.com chief executive. In 2015, Vroom bought Texas Auto Direct for $95 million and last year the company closed its development center in Rehovot.
Vroom is disrupting the traditional automotive industry with a direct-to-consumer fulfillment model and a seamless private-seller acquisition service.
“Consumers are begging for a change from the antiquated model of car-buying that we’ve all been taught is our only option,” said Hennessy. “Research shows that less than 1% of people prefer the current car-buying process. That dissatisfaction is why we’re investing in a better customer experience, which means greater selection, leading price positioning, and an end-to-end online transaction.”
Vroom brings the entire car-buying process online, from financing to purchase. Its private-seller acquisition model allows customers to get a cash offer for their vehicle in minutes. Both buyers and sellers enjoy home delivery and pickup.
“Our national car delivery business is growing at a near triple-digit rate,” Hennessy continued. “We’ve shipped cars to all 50 states. There’s a Mercedes-Benz C-Class in Hawaii right now with a Vroom license plate on it. It’s clear that the public appetite is there, and I’m very encouraged by the rate of adoption we’re seeing.”
Beyond its simplified purchase process, Vroom offers customers transparent, no-haggle pricing and a 7-day return window with a money-back guarantee. The company’s 3,000+ low-mileage vehicles are thoroughly inspected and reconditioned before being sold. The majority of Vroom’s inventory is still under manufacturer warranty.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017