Tekion, innovator of the first cloud-native platform serving the entire automotive retail ecosystem, announced that it has secured $200 million in growth equity capital from Dragoneer Investment Group. This financing round sets Tekion’s valuation above $4 billion. Tekion plans to invest the capital to expand its product offering for dealer partners and OEMs, accelerate implementation timelines, and deliver world-class customer support as it continues to redefine automotive retail for dealers and consumers in a rapidly digitizing ecosystem.
“Tekion has charted an extraordinary growth path, revolutionizing the automotive retail industry through our comprehensive and fully integrated platform,” said Jay Vijayan, Founder and CEO of Tekion. “We are delighted to partner with Dragoneer, whose team has followed our progress closely for multiple years, believes in our long-term vision, and carries an impressive track record investing in best-in-class vertical SaaS businesses.”
The funding announcement follows Tekion’s performance in 2023, with 97% year-over-year annual recurring revenue growth and expanding partnerships in the industry including with over 2,000 automotive retailers, multiple leading-brand OEMs, and over 250 ecosystem technology partners. Since its founding in 2016, Tekion has delivered an industry-leading cloud platform and has rapidly gained customer traction while continually focusing on cutting-edge innovation and best practices. The recent addition of seasoned executives to its leadership team, including the key roles of CFO, CRO, and CTO, underscores Tekion’s continued market momentum and investment in long-term growth.
“Having watched Tekion’s rapid pace of innovation and market adoption over the past several years, we are proud to partner with and support Jay and his world-class team in the next phase of the company’s growth journey,” said Christian Jensen, Partner at Dragoneer. “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. Dragoneer selectively looks to be the partner of choice to the highest quality businesses and we’re proud to back Tekion as it builds the next generation of automotive retail technology.”
SOURCE: Businesswire