Tekion, a cloud-native automotive software-as-a-serivce platform, has secured a $200m in equity investment from Dragoneer Investment Group.
The funding elevates the company’s valuation to more than $4bn.
Go deeper with GlobalData
Tekion plans to use this capital injection to broaden its product range for dealer partners and original equipment manufacturers (OEMs), hasten implementation schedules, and enhance customer service.
Founded in 2016 by Jay Vijayan, a former Tesla chief information officer, the California-based startup has reported a 97% increase in year-over-year annual recurring revenue, reports Bloomberg.
It has also strengthened partnerships across the automotive industry.
Currently, it collaborates with more than 2,000 automotive retailers, numerous OEMs, and more than 250 ecosystem technology partners.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTekion’s revenue now ranges between $100m and $200m, according to co-founder and CEO Vijayan.
He disclosed to the publication that the company sees substantial scope for growth, particularly in selling its technology to more car dealerships.
Tekion’s clientele includes notable names such as Asbury Automotive Group, Longo Toyota and Lexus.
Despite not being profitable yet, Tekion aims to achieve break-even status by 2025, as per Vijayan.
While an IPO is anticipated, there is no urgency, with the focus remaining on business growth.
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.
“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.”
Vijayan added: “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.”
In its previous funding round in 2021, the company raised $250m in a Series D led by Alkeon Capital and co-led by Durable Capital.
Tekion also counts support from investors such as Hyundai Motor Company, Advent International, and Index Ventures.
