Used Car Retailer Vroom Raises $254 Million

New York-based online used-car retailer and e-commerce company Vroom has raised a $254 million funding round, the company stated Friday. The round was led by Durable Capital Partners with contribution from PICO Venture Partners.

Vroom was established in 2013 by Israeli-born Elie Wurtman and Allon Bloch.

When Vroom started up in 2013, it was initially billed as a stress-free way to purchase or sell previously owned automobiles online and by means of mobile.

Vroom provides an online direct-to-consumer platform that provides low-mileage reconditioned vehicles, with the added possibility of getting financial aid for the acquisition through lending partners of Vroom. The company also offers insurance products as part of the dealings made. Vroom provides a seven-day money-back guarantee on deals and also a 90-day bumper-to-bumper warranty.

Vroom’s CEO is Paul Hennessy, who was the CEO of Priceline.com

In December 2015, Vroom acquired Texas Direct Auto, a Houston-based company established in 2002, and is now owned by Vroom but operates as a separate brand.

To this day, the company has raised $694 million.