Bengaluru, NFAPost: Tekion, a cloud technology company and provider of SaaS retail operating platform (aka DMS) Automotive Retail Cloud, has raised $150 million as part of its Series C financing led by private equity firm Advent International round at over $1 billion valuation, becoming a unicorn in less than four years.
Vijayan, who directly reported to Tesla chairman and CEO Elon Musk was responsible for building all digital and information technology systems ground-up during his four-year stint there.
Before Tesla, Vijayan built technology platforms and solutions to help businesses scale while working in tech companies like Oracle and VMware in the US.
Jay Vijayan, CEO of Tekion, says today’s consumers receive outstanding personalized retail experiences from companies like Amazon, Apple, Google, and Disney.
Consumer journey
“Why shouldn’t they expect the same in their vehicle acquisition and service needs? We believe Tekion will be the trailblazer for enabling the modernisation 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,” says Tekion CEO Jay Vijayan.
It is interesting to note that Tekion still doesn’t offer its services in India but has strong roots in the country. Its APAC headquarters is in Bengaluru and it has a development centre in Chennai, with much of its research and development work happens in the India offices.
“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,” said says Tekion CEO Jay Vijayan.
Key investors
Prior to Advent’s investment, Tekion had raised $65 million in equity financing from investors. Tekion’s $150 million funding round, apart from Advent, saw participation from Index Ventures, Exor (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.
Advent’s funding will provide Tekion fresh capital to support additional investment in its platform and scale the company.
Expressing happiness over the development, Tekion CEO Jay Vijayan tweeted saying that he is thrilled and humbled in receiving the new investment at $1Billion+ valuation for the company
“It will help accelerate the business to bring true transformation to the industry. Thanks! to @adventintl and all our investors supporting us from early,” he tweeted.
Automotive industry
Founded in 2016, Tekion provides the world’s best business applications on the cloud and is currently focused on transforming the automotive industry. Its cloud-native platform brings the entire consumer, Dealer and OEM ecosystem together by seamlessly connecting every part of the automotive retail journey through its comprehensive Automotive Retail Cloud. Tekion inherently uses cutting-edge technologies to bring modern consumer experiences to life including IoT and ML/AI. Born in California’s Silicon Valley, Tekion employs over 450 innovators globally. For more information visit https://www.tekion.com.
Commenting on the investment, Advent Managing Director Eric Wei said the automotive retail and dealer technology ecosystem are ripe for disruption.
“It has operated for too long with outdated technology and patchwork systems that fail to meet the needs of modern dealers and their customers. From the moment we started talking to Tekion’s dealers, we were blown away by the ease and speed of the migration process, especially from the multiple dealers who transitioned in one month’s time, entirely remotely during the COVID-19 pandemic,” said Advent Managing Director Eric Wei.
Advent Managing Director Eric Wei said Tekion 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,” said said Advent Managing Director Eric Wei.
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.
