Vroom, the American-Israeli online purveyor of pre-owned cars, will acquire Houston-based Texas Direct Auto, the top retailer on eBay Motors, through a $95 million Series C equity round.

Vroom was founded in 2013 to eliminate the hassle of buying, selling and financing cars by putting the entire process online.

The two brands will continue to operate online separately, while the combined company, headquartered in New York, will grow to 500 employees and will include auto reconditioning and fulfillment facilities in Dallas, Houston and Indianapolis. Vroom will now be able to provide free coast-to-coast car delivery within two days.

Vroom’s Israeli R&D center in Ness Ziona, Israel, developed the proprietary intelligent big-data system that enables customers to get cash offers on their cars sight unseen in minutes — an industry first. Vroom offers a seven-day money-back guarantee and 90-day bumper-to-bumper warranty.

From left, Vroom cofounders Elie Wurtman, Allon Bloch and Marshall Chesrown. Photo: courtesy
From left, Vroom cofounders Elie Wurtman, Allon Bloch and Marshall Chesrown. Photo: courtesy

“Texas Direct Auto has led online car retailing and their team shares our business spirit of making buying and selling cars online the smartest and easiest way to transact, with an experience that is transparent and fun,” said Vroom Chairman Elie Wurtman.

“The continued investment in technology allows the combined company to tackle the operational complexity of making this vision a reality,” said Wurtman, a serial entrepreneur based in Jerusalem. “Millions of people who want to sell their cars or purchase new ones will be able to do it in a more efficient and empowering way that’s as easy as any other e-commerce transaction.”

Added Texas Direct Auto co-founder Mike Welch: “Vroom is as passionate as we are about changing the way cars are bought and sold online and providing the best end-to-end customer experience.”