Used car e-commerce company Vroom files for IPO

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Vroom Inc. has filed for its initial public offering Monday, seeking to list on the Nasdaq Global Market under the ticker symbol VRM, according to a Securities and Exchange Commission filing. The New York-based e-commerce company lets people buy and sell used vehicles. Vroom reported a first-quarter net loss of $27.1 million, narrowing from $41.1 million in the year-ago period. Vroom's revenue rose to $375.8 million from $235.1 million a year ago. Vroom's revenue is primarily from its retail vehicle sales, which accounted for $308.7 million in the first quarter. The SEC filing says the company plans to raise $100 million, but that number is often a placeholder that Vroom will update as it gets closer to listing its shares. The company said that the COVID-19 pandemic hurt sales in March and the company reduced its inventory, among other defense measures, as a result. Vroom said it had furloughed roughly a third of its staff and reduced salaries for the remaining workers, including executives. The company said it had $156.4 million in cash and equivalents at the end of April.