NEW YORK — Vroom, an online platform for buying and selling used cars, saw its stock take off on the Nasdaq exchange Tuesday. Trading under the symbol VRM, the NY-based company sold 21.25 million shares at $22 each and raised $468 million.
Shares in Vroom closed trading Tuesday at $47.90, more than double its offering price.
Vroom lets users buy and sell cars entirely online and will even deliver the car to your home or apartment. Vroom had over 5,100 cars for sale on its service in the first quarter of 2020.
Launched in 2016, the company has raised over $721 million in venture capital from investors L Catterton, T Rowe Price, General Catalyst, Pico Partners and Allen & Co.
For 2019, Vroom reported revenues of nearly $1.2 billion and a net loss of $142.9 million.
CEO Paul Hennessy is a former CEO at Priceline.com.