Tekion recently secured $200 million investment from Dragoneer Investment Group.
The financing round for the company, a developer of a cloud-native platform for the automotive industry, raises its market valuation to more than $4 billion with plans to use the capital to expand its product offerings for dealer partners and OEMs and accelerate implementation timelines.
Tekion officials said it has had 97 percent 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.
Tekion’s Vijayan Comments
Tekion founder and CEO Jay Vijayan stated the company has charted an “extraordinary” growth path that has “revolutionized” the automotive retail industry through their comprehensive and fully integrated platform.
“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,” said Vijayan in a press statement.
Tekion cloud-native automotive platform that includes 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 platform uses technology, big data, machine learning, and AI to seamlessly bring together OEMs, retailers/dealers, and consumers.
Why Dragoneer Invested
Dragoneer partner Christian Jensen noted it has been tracking 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.”
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.
Tech Growth
For over a decade, Dragoneer has partnered with management teams growing exceptional companies, characterized by sustainable differentiation and superior economic models. The firm has been an investor in companies such as Airbnb, Alibaba, AmWINS, Atlassian, Doordash, Samsara, Slack, Snowflake, Spotify and Uber, among others
“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,” said Jensen.
“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.”