Tekion, a cloud technology company and provider of SaaS retail operating platform, Automotive Retail Cloud, announced its Series C financing round of $150 million at over a $1 billion valuation.
The funding round was led by Advent International, one of the largest and most experienced global private equity investors, with participation from Index Ventures, Exor (the holding company of Fiat Chrysler Automobiles and Ferrari), Airbus Ventures and FM Capital (a fund that includes a large number of top 100 dealers in the country as it’s limited partners).
Tekion’s other key investors from the Automotive industry include General Motors, BMW iVentures, and Nissan-Renault-Mitsubishi Alliance Ventures.
“Today’s consumers receive outstanding personalized retail experiences from companies like Amazon, Apple, Google, and Disney. Why shouldn’t they expect the same in their vehicle acquisition and service needs? We believe Tekion will be the trailblazer for enabling the modernization of the entire consumer journey and providing the best experiences and operational efficiencies, period. It’s time to even the playing field for the automotive retail industry.” said Jay Vijayan, CEO of Tekion. “We are fortunate and proud to be supported by great investors from the world’s top OEM brands, top dealers in the country, venture, and private equity firms. We consider this as true validation of the value we are bringing to the industry. We are thrilled to welcome Advent as we scale our business, expand our products, and transform what the auto retail experience should be.”
Tekion proudly counts some of the country’s most influential dealer groups as its dealer partners in 28 US states and growing across the country. Tekion’s Automotive Retail Cloud already integrates with 17 OEM brands and the company is targeting to complete the remaining OEM integrations in early 2021.
“Tekion is the true disrupter the industry has been waiting on for decades,” said Joe Serra, President, Serra Automotive Inc.,who owns 50 dealerships representing 62 franchises spread across the country.“I’m very impressed with their modern DMS platform and their awesome team. I’m so convinced that their technology and vision will transform automotive retail for consumers, dealers, and manufacturers that I wanted to be a part of the change by investing in the company.”
Advent’s investment will provide Tekion with fresh capital to support additional investment in its platform as well as scaling the company, Tekion said in its press release.
“The automotive retail and dealer technology ecosystem are ripe for disruption. It has operated for too long with outdated technology and patchwork systems that fail to meet the needs of modern dealers and their customers,” said Eric Wei, a Managing Director on Advent’s technology investment team in Palo Alto. “From the moment we started talking to Tekion’s dealers, we were blown away by the ease and speed of the migration process, especially from the multiple dealers who transitioned in one month’s time, entirely remotely during the COVID-19 pandemic. Their dealer-friendly approach to contract terms and data ownership will be a breath of fresh air for dealers. We are excited about the platform and the size of the opportunity.”
“We believe Tekion’s cloud-native technology, which simplifies sales and service for both consumers and dealership employees, has the potential to transform the automobile ownership experience,” said Mark Norman, Managing Partner at FM Capital.
Prior to Advent’s investment, Tekion had raised $65 million in equity financing from investors including Index Ventures, General Motors (GM), Alliance Ventures (Nissan-Renault-Mitsubishi), BMW iVentures, Exor, AME Cloud Ventures, alongside many dealer groups.
Jon McNeill, Advisory Partner at Advent, former Chief Operating Officer of Lyft Inc. and former President of Global Sales, Marketing, Delivery and Service at Tesla joins Tekion’s Board of Directors with Eric Wei of Advent.
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