Vroom, an online retailer of pre-owned cars, raised $95m in Series C funding.
The company is using the funds to acquire Texas Direct Auto (TDA), a Houston, Texas-based platform for retailing cars online.
Founded in 2002 by Mike Welch and Rick Williams, Texas Direct Auto leverages proprietary RFID tracking and prioritization software to sell vehicles to consumers, dealers and dealer networks around the globe.
Following the deal, which is subject to regulatory approval, the two brands will co-exist and continue to operate online separately. The combined company, headquartered in New York, will now have 500 employees and auto reconditioning and fulfillment facilities in Dallas, Houston and Indianapolis.
These facilities also serve as distribution centers, giving Vroom national reach to provide free coast-to-coast car delivery.
Founded in 2013 and led by Allon Bloch, CEO, Vroom enables customers to find low mileage cars at prices below market value, with free delivery nationwide. Vroom provides a 7-day money back guarantee, no questions asked return policy, and a 90-day bumper-to-bumper warranty.
The funding will support the acquisition, growth and expedite delivery. The company is also opening a new 500,000 square foot facility near Indianapolis in early 2016.