New York City-based e-commerce company Vroom which buys and sells used cars has filed to raise $70 million in new equity funding. The company has already secured $30 million of that $70 million targets.
The company with this is signaling confidence from investors that it’ll become profitable and beat out key competitors in the space, such as Carvana and Shift.
The company has an aim of making the process of buying a used car as easy as ordering a pizza. With more than 3,000 cars for sale on the site, the startup delivers directly to its customers’ doorsteps. However, when asked, Vroom declined to comment on its upcoming round.
“While Vroom’s 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 company said in a statement. “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.”
Buying and selling cars is a capital-intensive business, and thus, Vroom is back in the fundraising game. 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.