Tekion Corp raises $250 million, valuation trebles in just one year
Hyundai Motor Co.—as well as existing investors Advent International and Index Ventures— also participated in the fundraising, which more than tripled Tekion’s valuation to more than $3.5 billion. The company — founded by former Tesla executives Jay Vijayan and Guru Sankararaman — was worth $1 billion when it raised $140 million in October 2020.
The fresh capital will be used for expansion beyond the United States and Canada, building a state of the art customer experience centre and two innovation hubs in the US, and investing in expansion in India.
Tekion counts Bengaluru as its APAC headquarters and has a centre in Chennai as well. The company employs over 900 people across the two Indian cities.
“We have experienced phenomenal market acceptance during the past year. This strong round of funding validates industry and investors’ belief in Tekion’s disruption and our exceptional team of innovators,” Tekion CEO Jay Vijayan said. “Our investors know that we’re future-driven, and they want to be part of our remarkable story.”
Tekion builds a dealer management software for car distributors and has signed up several firms such as General Motors, Volkswagen, BMW, Chrysler, Nissan and several others to help distributors migrate to cloud-based software platforms.
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The company claims that dealers in the US and Canada have been able to sell over 170,000 vehicles, service more than one million cars, sell parts worth $720 million and book overall transactions from customers worth over $2 billion. Its technology platform has been able to achieve a sales forecast accuracy of 95.6%.
“Tekion is turbo-charging the automotive industry by offering an end-to-end, next-generation technology software platform for both car dealers and automotive manufacturers, which provides a rich and unified consumer experience,” said Deepak Ravichandran, general partner at Alkeon Capital.