Alkeon Capital and Durable Capital led a $250 million Series D fundraising round for Tekion Corp, a cloud-native platform for the automobile retail business.

Tekion was valued at more than $3.5 billion after the fundraising, which included Hyundai Motor Co., as well as existing investors Advent International and Index Ventures. When it raised $140 million in October 2020, the firm founded by former Tesla executives Jay Vijayan and Guru Sankararaman was valued $1 billion.

The new funds will be used to expand beyond the United States and Canada, including the construction of a state-of-the-art customer experience centre and two innovation hubs in the United States, as well as investments in India.

Tekion's APAC headquarters are in Bengaluru, and the company also has a presence in Chennai. Across the two Indian cities, the company employs around 900 individuals.

“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 creates dealer management software for car distributors and has partnered with GM, Volkswagen, BMW, Chrysler, Nissan, and others to assist distributors in making the transition to cloud-based software platforms.

According to the company, dealers in the United States and Canada have sold over 170,000 vehicles, serviced over one million vehicles, sold $720 million in parts, and completed over $2 billion in transactions with customers. Its IT platform was able to attain a 95.6 percent accuracy in sales forecasting.
“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.