Tekion, innovator of the first cloud-native platform serving the entire automotive retail ecosystem, today 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.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240716921069/en/
Tekion Secures $200 Million in Growth Capital from Dragoneer Investment Group (Graphic: Business Wire)
“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.”
About Tekion
Positively disrupting an industry that has not seen disruption in over 50 years, Tekion has challenged the paradigm with the first and fastest cloud-native automotive platform that includes the revolutionary Automotive Retail Cloud (ARC) for retailers, Automotive Enterprise Cloud (AEC) for manufacturers and other large automotive enterprises, and Automotive Partner Cloud (APC) for technology and industry partners. Tekion connects the entire spectrum of the automotive retail ecosystem through one seamless platform. The transformative platform uses cutting-edge technology, big data, machine learning, and AI to seamlessly bring together OEMs, retailers/dealers, and consumers. With its highly configurable integration and greater customer engagement capabilities, Tekion is enabling the best automotive retail experiences ever. For more information, visit www.tekion.com.
About Dragoneer Investment Group
Dragoneer Investment Group is a growth-oriented investment firm with over $23 billion under management and a flexible mandate to invest in high-quality businesses in both the public and private markets. For over a decade, Dragoneer has partnered with management teams growing exceptional companies, characterized by sustainable differentiation and superior economic models. The firm seeks to deliver attractive returns while maintaining a focus on capital preservation and margin of safety. Dragoneer looks to partner with the best businesses globally and has been an investor in companies such as Airbnb, Alibaba, AmWINS, Atlassian, AppFolio, Bytedance, Dayforce, Clearwater Analytics, Datadog, Doordash, Livongo, Nubank, PointClickCare, Procore, Samsara, Slack, Snowflake, Spotify, Uber, among others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716921069/en/