TechCrunch reported today that the New York-based company has already raised $30 million towards its goal
Vroom is back pitching. Yesterday, the site for buying and selling used cars filed 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’ll become 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.
It’s not surprising Vroom is back in the fundraising game. Buying and selling cars is a capital-intensive business.
Vroom’s 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.