Vroom, an online used car marketplace, filed on Monday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $300 million.
In December 2015, the company acquired Houston-based Texas Direct Auto, which included its proprietary vehicle reconditioning center (Vroom VRC), its sole physical retail location, and its Sell Us Your Car centers. The company's e-commerce revenue grew at a 77% CAGR from 2016 to 2019, including 95% year-over-year growth in 2019. In the 1Q20, Vroom had more than 947,000 average monthly visitors, up 130% from the 1Q19.
The New York, NY-based company was founded in 2012 and booked $1.3 billion in revenue for the 12 months ended March 31, 2020. It plans to list on the Nasdaq under the symbol VRM. Vroom filed confidentially on December 13, 2019. Goldman Sachs, BofA Securities, Allen & Company, and Wells Fargo Securities are the joint bookrunners on the deal. No pricing terms were disclosed.
