Tekion valuation triples as software firm raises $250m
California-based Tekion has raised $250m in a Series D funding round at a $3.5bn valuation
California-based automative software firm Tekion has raised $250m in its latest Series D funding round bringing the company’s valuation to $3.5bn, the company announced on Tuesday.
Its new valuation indicates increased consumer demand in the automotive industry and strong market acceptance in the US. Tekion’s valuation has tripled since last October when the company raised $150m at a $1bn valuation from Advent, Index Ventures, Airbus Ventures and Exor.
The funding round was led by Alkeon Capital and co-led by Durable Capital, with participation from Hyundai Motor Company, Advent International, Index Ventures (who led its Series A) and FM Capital, who also reinvested in this round.
Streamling automative dealer operations
Tekion was founded in 2016 and is currently led by former Tesla chief information officer Jay Vijayan.
The firm facilitates online deals through its software platform and integrates with dealerships to streamline the relationship and journey between the dealer and consumer.
Tekion provides a cloud computing based approach to digitise car dealerships, and aims to disrupt in an industry that has predominantly relied on in-person interactions. Its workforce has also grown to more than 1,000 people from 400 last year. Tekion will use the funding to drive agility into dealer operations, expand in the US and globally, and improve the digital customer experience.
Turbo-charging the automotive industry
Tekion Founder and CEO Jay Vijayan says the funding round “validates industry and investors’ belief in Tekion’s disruption and our exceptional team of innovators”.
“We have experienced phenomenal market acceptance during the past year. Our investors know that we’re future-driven, and they want to be part of our remarkable story,” he added.
Deepak Ravichandran, general partner at Alkeon Capital commented: “Tekion is turbo-charging the automotive industry by offering an end-to-end, next-generation technology software platform for both car dealers and automotive manufacturers. By building a single, unified cloud platform for manufacturers and dealers, Tekion is also unlocking multiple new markets heretofore unavailable to legacy incumbents limited by archaic technology architecture. We believe Tekion is just getting revved up for its multi-year journey in redefining an industry and becoming the market’s leading and dominant player.”