Tekion, an automotive industry-focused technology startup founded by Jay Vijayan, the former CIO (Chief Information Officer) of Tesla, has entered the unicorn club with its latest Series C funding round.
Tekion received a funding of $150 million, at a valuation in excess of $1 billion, according to a press statement.
The funding round was led by Advent International (“Advent”), one of the largest and most experienced global private equity investors, with participation from Index Ventures, Exor (the holding company of Fiat Chrysler Automobiles and Ferrari), Airbus Ventures and FM Capital.
Tekion’s other key investors from the Automotive industry include General Motors, BMW iVentures and Nissan-Renault-Mitsubishi Alliance Ventures.
Headquartered in the US with development centres in Indian cities Chennai and Bangalore, Tekion received a funding of $150 million led by Advent International, at a valuation in excess of $1 billion, according to a press statement.
“Today’s consumers receive outstanding personalized retail experiences from companies like Amazon, Apple, Google, and Disney. Why shouldn’t they expect the same in their vehicle acquisition and service needs? We believe, Tekion will be the trailblazer for enabling the modernization of the entire consumer journey and providing the best experiences and operational efficiencies, period. It’s time to even the playing field for the automotive retail industry,” said Jay Vijayan, CEO of Tekion.
“We are fortunate and proud to be supported by great investors from the world’s top OEM brands, top dealers in the country, venture and private equity firms. We consider this as true validation of the value we are bringing to the industry. We are thrilled to welcome Advent as we scale our business, expand our products and transform what the auto retail experience should be.” he added.
The latest investment will allow Tekion to scale and expand to international markets like Japan and India as well as Europe next year. Jon McNeill, Advent Advisory Partner, former Chief Operating Officer of Lyft Inc. and former President of Global Sales, Marketing, Delivery and Service at Tesla joins Tekion’s Board of Directors with Eric Wei of Advent.
Tekion’s Automotive Retail Cloud addresses the top pain points OEMs and dealers have been living with for decades.
It is the first end-to-end cloud-native platform that brings every part of the retail journey in one seamless application. In addition to advanced analytics, Tekion provides Open APIs and gives dealers access to their data to glean valuable insights to help improve processes and experiences for their customers.
Tekion also provides enterprise scale capability for larger dealer groups, with features such as centralized accounting and a highly secure data repository with the ability to access data from anywhere. Billing is fair and flexible, honoring 30-day cancellation notices, zero integration costs and much more.
Dealers leveraging Tekion not only digitize their operations with the most modern end-to-end technology platform, but also take advantage of efficiency improvements, cost savings and new revenue generating opportunities enabled by Tekion’s machine learning and artificial intelligence engine.
Speaking on the investment, Eric Wei, Managing Director, Advent, said, “Their dealer-friendly approach to contract terms and data ownership will be a breath of fresh air for dealers. We are incredibly excited about the platform and the size of the opportunity.”
Tekion launched its first product in the third quarter of 2019, targeted at automobile dealers in North America.
The SaaS-based technology platform connects dealers, car owners, and manufacturers to provide end-to-end services, delivered through the cloud.
Its flagship product — Automotive Retail Cloud — already integrates with 17 OEM brands, and is targeting to complete the remaining OEM integrations as early as 2021.
Tekion’s entry into the unicorn club adds to the growing number of Indian startups or those with strong Indian connection in terms of development centers, who enjoy a valuation in excess of $1 billion. This year, Postman, Pinelabs, Unacademy, Nykaa, Zerodha, Firstcry, and Razorpay also made it to the famed unicorn club.
Authored by, Ayush Sharma
Content Developer, Startup Monk