Column: Tekion, a DMS upstart, attracts the NYSE's attention

When Tekion announced a massive fundraise in late July, the New York Stock Exchange gave it an online shoutout.

"Buckle up, Auto Industry!!" wrote Brian Baumann, the NYSE director of capital markets, technology innovation in a LinkedIn posting. "Tekion Corp. just secured a $200 million investment led by Dragoneer Investment Group, turbocharging its mission to transform the entire automotive retail industry."

Baumann's post went on to congratulate Tekion's team, including its CEO and co-founder Jay Vijayan. Tekion shared the good words, tacking on a LinkedIn message of its own thanking Baumann and the NYSE for recognizing the accomplishment. A Tekion spokesperson said the company acknowledged the NYSE's social media post "as a courtesy."

Why does this matter? Because Tekion, armed with a $4 billion valuation since its latest fundraise, isn't just any company and the NYSE is not your typical tech company fan.

Tekion's cloud-based is aggressively challenging longtime players, including CDK Global and Reynolds and Reynolds. It has raised a whopping $650 million in venture capital since its 2016 founding, including the new round, and Vijayan has said Tekion might pursue an initial public offering if it meets certain milestones. Industry rumors suggest it could pull the trigger late this year or early in 2025, assuming the long-struggling IPO market recovers enough.

Tekion will have to decide on the NYSE or NASDAQ, the more technology-heavy exchange, if and when it chooses to go public.

That's where the NYSE's shoutout is interesting, according to Chris Legg, senior managing director at Progress Partners, a corporate advisory firm that helps buyers and sellers of emerging growth companies, in part, get their returns from exit strategies, including mergers and acquisitions or IPOs.

Legg said the NYSE typically puts a lot of effort behind building its brand, and its social media posts commonly highlight "prestigious companies that either have just been listed or are approaching an anniversary of being listed." Tekion fits right in, he said.

"With such a push behind brand building already, it's easy to get goodwill from a company like Tekion by recognizing them and congratulating them on their platform," Legg said. "That said, they are selective about which companies they promote, which speaks to Tekion's success as a company."

Will the NYSE's flirty shoutout be enough to encourage Tekion to link up if it pursues an IPO? Write me with your thoughts.