Automotive Software Platform Tekion Secures $200 Million in Growth Capital from Dragoneer Investment Group
July 16 2024 - 1:00PM
Business Wire
Dragoneer leads investment to accelerate company’s growth
trajectory and support continued product leadership in the
automotive retail industry
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.
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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.
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Marylou Hastert press@tekion.com