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Online Used Car Seller Vroom Files For $100 Mln IPO

Vroom Inc., a New York City-based used car retailer and e-commerce company that enables consumers to buy, sell and finance cars online, filed with the U.S. Securities and Exchange Commission with respect to its initial public offering of up to $100 million shares of common stock.

The company plans to apply to list its common stock on The Nasdaq Global Market under the symbol "VRM."

The company neither disclosed details about the number of shares it intends to offer nor its price range.

The company plans to use the net proceeds from the offering for general corporate purposes, including advertising and marketing, technology development, working capital, operating expenses and capital expenditures.

The company was founded in August 2013 by Marshall Chesrown, Kevin Westfall and Scott Chesrown.

Vroom disclosed in the filling that its net loss attributable to common stockholders for the first-quarter ended March 31, 2020 narrowed to $41.06 million from $45.10 million last year. Quarterly revenue rose 59.9% to $375.8 million from the prior year.

The COVID-19 pandemic has impacted the company in a number of ways, including an adverse impact on its ecommerce operations. The company began to see the impact on its ecommerce operations during the last three weeks of its fiscal quarter ended March 31, 2020, Vroom said in the filling.

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