Tekion, the innovative SaaS unicorn specializing in the automotive retail industry, has recently raised $200 million in growth equity capital from Dragoneer Investment Group, bringing its valuation to over $4 billion. This strategic funding round will fuel Tekion’s expansion efforts as it aims to enhance its reach among automotive retailers and OEMs globally.
Founded in 2016 by Jay Vijayan and headquartered in California, Tekion also has a strong presence in Bengaluru and Chennai. With this latest investment, the company has accumulated a total of $640 million in funding, following a $250 million round in October 2021. Tekion’s rapid growth and market influence are underscored by its ability to attract significant investment from renowned firms.
Tekion plans to utilize the new capital to drive market expansion and extend its comprehensive and fully integrated platform’s reach within the automotive retail sector. With nearly 3,000 employees worldwide, the company is poised to continue its trajectory of impressive growth and industry transformation. Key investors in Tekion include Index Ventures, Advent International, Durable Capital Partners, Alkeon Capital Management, Storm Ventures, GM, BMW I Ventures, Exor, Hyundai, AME Cloud Ventures, and Airbus Ventures.
In 2023, Tekion achieved an annual revenue run rate exceeding $100 million, reflecting a remarkable 97% growth. The company has established partnerships with over 2,000 automotive retailers and OEMs, as well as 250 technology partners. Its customer base spans the US, Canada, and the UK, featuring notable brands such as Penske Motor Group, American Motors Group, Walt Massey Automotive, California Automotive Retailing Group, Rohrman Automotive Group, Rairdon Automotive Dealerships, Sandy Sansing Automotive, and Longo Toyota and Lexus of Penske Motor Group.
Christian Jensen, Partner at Dragoneer, highlighted Tekion’s market-defining platform and its scalability in one of the most complex industry verticals. Jensen emphasized the immense opportunities ahead as automotive customers increasingly demand seamless, digital-first experiences and automotive retailers seek competitive advantages, business efficiencies, and insights from advanced technologies. This investment underscores Tekion’s potential to continue revolutionizing the automotive retail industry.
