Tekion operates a cloud-native automotive platform that includes Automotive Retail Cloud (ARC), Automotive Enterprise Cloud (AEC), and Automotive Partner Cloud (APC) to connect OEMs, dealers, and technology partners. The platform uses big data, machine learning, and AI and is highly configurable to enable integration and enhanced customer engagement. Tekion reported 97% year-over-year annual recurring revenue growth in 2023 and works with over 2,000 automotive retailers, multiple leading-brand OEMs, and more than 250 ecosystem technology partners. Founded in 2016 and headquartered in Pleasanton, Calif., the company has rapidly gained customer traction and added seasoned executives including a CFO, CRO, and CTO. Tekion plans to use new capital to expand product offerings for dealer partners and OEMs, accelerate implementation timelines, and deliver world-class customer support. The company positions itself as a market-defining, fully integrated platform aimed at transforming automotive retail. Tekion builds an end-to-end automotive retail SaaS platform used by dealers, OEMs and retailers to manage sales, inventory and service workflows. The company is led by former Tesla CIO Jay Vijayan and operates out of Pleasanton, California with operations in Bangalore, India. Tekion reports revenue grew threefold over the last year, expanded dealer usage from 28 to 39 U.S. states, and began working with its first Canadian dealership. Growth has been largely organic: the company says it spends negligible amounts on marketing and only 17 of its 1,350 employees work in sales. Tekion has commercial relationships and early investor support from automakers and dealer groups, including General Motors, BMW and the Nissan‑Renault‑Mitsubishi Alliance. Leadership expects the platform to help dealers and OEMs navigate a market correction as inventory normalizes next year. Tekion was founded by former Tesla CIO Jay Vijayan and is described in the article as a four-year-old San Carlos company with about 470 employees locally and in Bangalore. Its core product is a cloud-based dealer management platform that connects dealers with manufacturers and car buyers and uses machine learning to provide recommendations and automate intake and service workflows. The company bought a dealership in Gilroy to use as a lab while building the product, and its software is reported to be used across 28 states. Dealership customers cite time savings from features like RFID-based check-ins and automated service suggestions, and say Tekion has allowed them to cut ties with multiple legacy vendors. Tekion competes with long-standing incumbents such as Reynolds & Reynolds, CDKGlobal and Cox Automotive’s Dealertrack, and the article notes Tesla’s internal service startup could be a future competitive threat. Financially, the company has raised $185 million to date and is valued at north of $1 billion. Tekion offers a cloud-based platform that uses machine learning, AI, big data and IoT to create connected digital experiences for automotive retail. The platform is designed to bring a seamless digital experience from online to in-store for car dealerships across the United States. It aims to help dealers improve customer experience while increasing efficiency, revenue and retention. The company is led by its founder and chief executive officer and employs over 150 innovators. Tekion says the investment will enable it to continue building integrated experiences that connect OEMs, dealers and consumers. The article does not disclose financial metrics or the exact amount of the investment.

Total raised

$600M

Funding rounds

4

Latest round

Equity

Latest activity

Jul 2024