Online used-car retailer Vroom secured $254 million in a Series H funding round, the company announced today. The extra capital brings the 6-year-old company’s funding total to $721 million.
Vroom will leverage the capital to invest in its people, technology, products, and marketing. Specifically, the company is expected to “significantly increase” its product and engineering staff next year at its newly established corporate hub in Detroit, which opened in August. “This new round of funding provides the necessary resources to further grow and scale our business,” said Vroom Chief Executive Paul Hennessy.
The round was led by Durable Capital Partners LP, a new lead investor in Vroom. Previous investors T. Rowe Price Associates and L Catterton also contributed to the funding round.
Also read: Chase Auto inks deal with Vroom
Vroom’s e-commerce platform ropes in all phases of the vehicle buying and selling process. The retailer offers used vehicles to consumers with at-home pickup and delivery. It also arranges financing through various lenders – including Chase Auto, Capital One Auto Finance, Ally Financial, TD Auto, and SunTrust Bank – and offers warranty, insurance and add-on products.
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