Tekion gets $200 million in growth capital from Dragoneer Investment Group
Tekion, developer of a cloud-native platform that serves the entire automotive retail ecosystem, has secured $200 million in growth equity capital from Dragoneer Investment Group.
In a news release, the company said the financing round raises its market valuation to more than $4 billion and said it plans to use the capital to expand its product offerings for dealer partners and OEMs and accelerate implementation timelines.
“Tekion has charted an extraordinary growth path, revolutionizing the automotive retail industry through our comprehensive and fully integrated platform,” Tekion founder and CEO Jay Vijayan said. “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.”
Tekion said it has had 97% year-over-year annual recurring revenue growth and has partnerships with more than 2,000 automotive retailers, multiple OEMs and more than 250 technology partners.
“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,” Dragoneer partner Christian Jensen 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. 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.”