Vroom, an online marketplace for buying and selling vehicles, has raised $254 million in a Series H funding round, according to a release by the company.
Durable Capital Partners led the round, and T. Rowe Price Associates, L Catterton and others participated. Vroom has raised $721 million so far.
The company created a platform that puts the car buying process directly under the control of buyers and sellers, without the need for an intermediary or car dealership.
Vroom said it will use the capital to invest in expanding its workforce, technology, operations and marketing, as well as products.
The company opened an engineering port in Detroit this year. It chose the city for its “wide pool of skilled tech, design and product talent, as well as its longtime automotive industry legacy.” The Detroit office will be pivotal to the company’s future plans.
Vroom plans to continue hiring more product and engineering staff into 2020. The company said it aims to put all the aspects of buying and selling a car online.
“This new round of funding provides the necessary resources to further grow 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.”
Henry Ellenbogen, CIO at Durable Capital Partners, said he’s excited to be able to invest in such a forward-facing company.
“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,” Ellenbogen said. “We’re very excited to be a part of the future of automotive retail, and [we] support Vroom in its efforts to move the car buying and selling process online for consumers across the country.”
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