SaaS unicorn Tekion raises $200M from Dragoneer
Tekion last raised $250 million in October 2021, and the startup will use this capital primarily for market expansion.
Tekion, the SaaS unicorn startup focused on the automotive retail industry, has raised $200 million in growth equity capital from Dragoneer Investment Group at a valuation of over $4 billion.
Founded in 2016 by Jay Vijayan and headquartered in California, US, also has a presence in Bengaluru and Chennai.
Tekion previously raised $250 million in October 2021. It has now cumulatively raised $640 million.
The company has close to 3,000 employees globally.
Tekion will use this fresh round of capital towards market expansion as it looks to extend its reach among automotive retailers and OEMs.
“Tekion has charted an extraordinary growth path, revolutionising the automotive retail industry through our comprehensive and fully integrated platform,” said Tekion Founder and CEO Jay Vijayan.
The other key investors in Tekion include Index Ventures, Advent International, Durable Capital Partners, Alkeon Capital Management, Storm Ventures, GM, BMW I Ventures, Exor, Hyundai, AME Cloud Ventures, and Airbus Ventures.
According to Tekion, the annual revenue run rate of the company is in excess of $100 million in 2023 and recorded a growth of 97%. It has partnered with over 2,000 automotive retailers and OEMs, and 250 technology partners.
Its customers are spread across the US, Canada and the UK, and include brands like Penske Motor Group, American Motors Group, Walt Massey Automotive, California Automotive Retailing Group, Rohrman Automotive Group, Rairdon Automotive Dealerships, Sandy Sansing Automotive, and Longo Toyota and Lexus of Penske Motor Group.
On the funding, Christian Jensen, Partner at Dragoneer, said, “Tekion has built a market-defining platform with proven scalability in one of the largest and most complex industry verticals. We see incredible opportunity ahead as automotive customers increasingly seek frictionless, digital-first experiences and automotive retailers seek competitive advantages, business efficiencies, and deep insights from powerful new technologies.”
Edited by Kanishk Singh