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Jay Vijayan
California-based Tekion has raised $200 million in growth equity capital from Dragoneer Investment Group at a valuation of over $4 billion.
The funding round follows a previous raise of $250 million in October 2021, bringing Tekion's total funding to $640 million.
What does Tekion do?
Tekion, founded in 2016 by former Tesla Chief Information Officer (CIO) Jay Vijayan, is the first cloud-native platform serving the entire automotive retail ecosystem. The company also has offices in Bengaluru and Chennai.
The company is known for its comprehensive and fully integrated platform that revolutionizes automotive retail for both dealers and consumers in a rapidly digitizing market.
Expanding product offerings
The new capital will be used to expand Tekion's product offerings for dealer partners and original equipment manufacturers (OEMs), accelerate implementation timelines, and enhance customer support.
Tekion aims to extend its reach among automotive retailers and OEMs, delivering a seamless, digital-first experience for its users.
Jay Vijayan, Founder and CEO of Tekion, said, “Tekion has charted an extraordinary growth path, revolutionizing the automotive retail industry through our comprehensive and fully integrated platform.”
Tekion growth
Tekion claims to have witnessed impressive growth, with a 97% year-over-year increase in annual recurring revenue in 2023, reaching over $100 million.
The company has established partnerships with over 2,000 automotive retailers and more than 250 ecosystem technology partners. These partnerships span across the US, Canada, and the UK, including notable brands like Penske Motor Group and Longo Toyota and Lexus of Penske Motor Group.
Christian Jensen, Partner at Dragoneer, said, “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,”