Tekion, an innovative automotive software platform founded by Jay Vijayan, a former Tesla executive, has successfully secured $200 million in growth equity capital from Dragoneer Investment Group, the company announced on Tuesday. This latest funding round boosts Tekion’s valuation from $3.5 billion to over $4 billion.
The new capital infusion is set to enhance Tekion’s product offerings for dealer partners and original equipment manufacturers (OEMs), accelerate implementation timelines, and bolster customer support. Jay Vijayan, Tekion’s founder and CEO, remarked, “Tekion has charted an extraordinary growth path, revolutionizing the automotive retail industry through our comprehensive and fully integrated platform. Dragoneer’s team has followed our progress closely for multiple years, believes in our long-term vision, and carries an impressive track record investing in best-in-class vertical SaaS (software-as-a-service) businesses.”
Headquartered in Pleasanton, California, with a significant presence in Bengaluru and a regional center in Chennai, Tekion has shown remarkable growth since its inception in 2016. In 2023, the company experienced a 97% year-on-year run rate revenue growth and expanded its partnerships to over 2,000 automotive retailers, numerous leading OEMs, and more than 250 ecosystem technology partners.
Tekion’s cloud platform is recognized for its industry-leading capabilities and continues to attract new customers at a rapid pace. The company has also recently strengthened its leadership team with seasoned executives, including a new chief financial officer, chief revenue officer, and chief technology officer, underscoring its market momentum and commitment to growth.
Christian Jensen, partner at Dragoneer, highlighted Tekion’s potential, stating, “Tekion has built a market-defining platform with proven scalability in one of the largest and most complex industry verticals. We see incredible opportunity ahead as automotive customers increasingly seek frictionless, digital-first experiences and automotive retailers seek competitive advantages, business efficiencies, and deep insights from powerful new technologies.”
With this significant investment, Tekion is well-positioned to continue its trajectory of innovation and growth, solidifying its role as a key player in the automotive software industry.
