Tekion Raises USD 200 Mn from Dragoneer Investment Group Tekion intends to leverage this new funding round to expand its market share and strengthen its position among automotive retailers and OEMs.
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Tekion, the SaaS unicorn revolutionising the automotive retail industry, has secured USD 200 million in growth equity from Dragoneer Investment Group, boosting its valuation to over USD 4 billion.
Index Ventures, Advent International, Durable Capital Partners, Alkeon Capital Management, Storm Ventures, GM, BMW I Ventures, Exor, Hyundai, AME Cloud Ventures, and Airbus Ventures are among the other significant investors in Tekion.
In October 2021, the California-based company had previously raised USD 250 million. To date, it has raised USD 640 million in total.
Having offices in Bengaluru and Chennai, Tekion intends to leverage this new funding round to expand its market share and strengthen its position among automotive retailers and OEMs.
Founded in 2016 by Jay Vijayan, Tekion employs over 3,000 people worldwide and provides a cloud-native platform to the whole automotive retail sector. It collaborates with more than 250 ecosystem technology partners and more than 2,000 automotive retailers.
"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.
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 are among its clients, who are dispersed throughout the US, Canada, and the UK.
Tekion reports that the company's yearly revenue run rate exceeded USD 100 million in 2023 and increased by 97%.
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."
