INSUBCONTINENT EXCLUSIVE:
After cutting a big portion of its staff in March, Vroomis back pitching investors.Yesterday, the site for buying and selling used carsfiled
to raise $70 million in new equity funding.
Vroom has already secured $30 million of that $70 million target, signaling confidence from
investors that it&llbecome profitable and beat out key competitors in the space, like Carvana and Shift.
The startup wants to make the
process of buying a used car as easy as ordering a pizza
With more than 3,000 cars for sale on the site, Vroom delivers directly to its customers& doorsteps
Since it was founded in 2013, Vroom has brought in $320 million from General Catalyst, T
Rowe Price, Altimeter and others, reaching a valuation of $655 million in July 2017
Vroom declined to comment on its upcoming round.
As part of the March layoffs, Vroom, which is headquartered in New York City, also
shuttered its Dallas, Texas and Whitestown, Indiana locations
The official number of employees Vroom let go is unclear, though when news of the layoffs broke, the company listed 845 employees on its
Today, the site list &600+& or about 30% fewer employees.
Used car site Vroom lays off staff, 25%-50% says source, as it halts Dallas and
Indiana operations
The cuts, the company said, were part of a restructuring that would allow Vroom to focus on profitability
This is what the company had to say in March:
While Vroom 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,& the statement said
&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.
It not surprising Vroom is back in the fundraising game
Buying and selling cars is a capital-intensive business.
Vroom competitors have similarly raised a lot of capital
Carvana brought in more than $300 million in equity funding, as well as $400 million in debt, before hitting the stock markets in 2017
Shift has raised roughly $110 million to date
Beepi, a cautionary tale in the business of selling used cars online, landed $150 million in VC funding, then failed to sell its business
twice,ultimately selling for parts to multiple buyers, including Vroom.
