Online car retailer Vroom announced a $76 million round of funding on Thursday that brings its total equity funding up to $295 million.
The company said in a news release that this Series F round was led by “certain funds and accounts advised by T. Rowe Price Associates, Inc.”, which was joined by prior investors L Catterton, General Catalyst Partners and PICO Venture Partners.
“Consumers are begging for a change from the antiquated model of car-buying that we’ve all been taught is our only option,” Vroom chief executive Paul Hennessy said in a news release. “Research shows that less than 1 percent 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,” said Hennessy, who previously was a Priceline.com executive.
He said the company’s nationwide car delivery business has shown close to triple-digit growth, with cars having been transported 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,” Hennessy said.
Paul Hennessy, Vroom
Henry Ellenbogen, portfolio manager at T. Rowe Price Associates, said in the release: “Vroom is disrupting the traditional car dealership model. This is a unique early stage company. It is fundamentally changing the way people buy and sell cars, and it has the management team to build a much larger company.”