Vroom, an ecommerce retailer that offers a way to buy and sell used vehicles, has announced the closing of a $254 million Series H funding round. The round was led by Durable Capital Partners LP with participation from T. Rowe Price Associates, L Catterton and others. The latest investment round brings Vroom’s total capital raised to $721 million.
Vroom will use the round of funding to continue to invest in its people, technology, operations and marketing. Vroom’s Detroit office is expected to increase its product and engineering staff in 2020 as the company accelerates investment in bringing aspects of the car buying and selling journey online.
Through its ecommerce platform, Vroom offers thousands of reconditioned vehicles with delivery directly to consumers. Vroom also arranges financing through lenders and offers warranty, insurance and other value-added products that provide added convenience.
“This new round of funding provides the necessary resources to further grow and scale our business,” said Paul Hennessy, CEO of Vroom in a statement. “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.”