Used Car Marketplace Vroom Looking For $70 Million Fresh Capital

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Vroom

New York based used car marketplace Vroom is actively looking for a fresh $70 million in equity funding. Interestingly, just 6 months ago the company cut short their employee strength by 30%. It had closed down their offices in Dallas, Texas and Whitestown andIndiana. However, the company says that it has already raised $30 million of that $70-million target.

It had raised $76 million last year in July which takes their total funding raised by the company to $295 million. Baltimore-based asset management group T. Rowe Price Group, Cambridge, Massachusetts-based venture capital firm General Catalyst, and Israel-based venture fund PICO Venture Partners are few of the investors of the company.

The company says that it wants the process of buying and selling cars as same as ordering a pizza. The company has over 3000 cars for sale on their portal. The company after getting a request from the customers, it directly delivers the cars to the doorsteps of the customers.

During the lay-off, the company through a statement had said, “While Vroom’s business is healthy and financially stable, we’re always looking to align our resources to fulfill our long-term vision and deliver on our mission. In sharpening our focus on profitability, we recently made some adjustments to our strategy that has impacted our headcount. While decisions like this are never easy, we are putting the company in a better position to become the leader in online car buying and continue to invest in future areas of growth.”

Vroom’s competitors include Carvana which has raised more than $700 million in equity and debt funding. The company went public last year. Shift and Beepi are the other players who have attracted investors in the recent times.

 

Image Courtesy : vroom

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