Online used car retailer Vroom gets $50 million new funding

September 20, 2016 7:33 AM EDT

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By Ankit Ajmera

(Reuters) - Online used-car retailer Vroom raised $50 million in a Series E funding round from existing and new investors, bringing the total funding to $218 million.

The latest round was led by existing investor T Rowe Price Associates Inc, and added technology-focused investment firm Altimeter Capital and Foxhaven Asset Management as investors.

New York-based Vroom's other investors who participated include private equity firm L Catterton, venture capital firm General Catalyst Partners and boutique investment bank Allen & Co.

Vroom, started in 2013, said the funding would help expand its operations in the United States and increase inventory.

Online used-car sales startups, which provide online financing approval and facilitate vehicle deliveries to a buyer's home, have been gaining traction as consumers increasingly look for convenience while shopping.

Vroom plans to have about half-a-dozen refurbishing facilities in the United States, up from two currently, Chief Executive Paul Hennessy told Reuters on Tuesday.

The company currently has an inventory of more than 2,300 vehicles, according to its website.

Vroom has said it expects to generate more than $1 billion of revenue in 2016, up from $900 million last year.

(Editing by Shounak Dasgupta and Sriraj Kalluvila)

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