AutoLeadStar, the digital data and customer experience platform for the automotive industry that is transforming the way cars are sold, today announced a $40 million Growth financing round led by Riverwood Capital with participation from existing investors.
AutoLeadStar is the AI-powered leader marketing automation technology for auto dealers and manufacturers, through its “Customer Data and Experience Platform” (CDXP), enabling one-to-one marketing, digital commerce and consumer engagement that informs and executes millions of decisions a day. In an increasingly digital economy where more than 65% of consumers expect to complete the majority of the car buying process online, AutoLeadStar makes it easy for dealerships to act seamlessly on a data-driven strategy .
The iconic car dealership industry has been an integral part of American culture since the early 1900s. In the United States alone, it’s more than a $1.5 trillion industry with a $150 billion annual spending on advertising, staff and operations and deep ties to local and regional economies, but it remains ripe for digital transformation.
“Customers’ car buying experience is changing rapidly, and the auto industry is hungry for new technologies to serve the modern consumer,” said AutoLeadStar co-founder and CEO. Aharon Horwitz. “AutoLeadStar is the industry’s premier technology lab, where we partner with dealerships to imagine the robust digital systems, online processes and software they need for an increasingly digitalized business landscape. We are thrilled to partner with Riverwood Capital to double and expand our investment in the technology we can provide automotive retailers. Automotive dealerships are huge drivers of economic growth and value in communities, and especially given the current economic climate, we are proud to help dealerships succeed in the digital age. ”
AutoLeadStar has grown revenue and scale more than 100% year over year in recent years and the company’s software is used by nearly 1,000 dealerships across North America to intelligently automate systems that were once siloed, outdated, and manual. In this new funding round, Riverwood Capital joins existing investors including PICO Venture Partners, Target Global and Aleph.
Francisco Alvarez-Demalde, co-founder and managing partner of Riverwood Capital, said, “AutoLeadStar is disrupting a market dominated by fragmented legacy solutions. The company provides dealerships with the most engaging software automation platform that consolidates data sources and implements sophisticated, hyper-targeted marketing campaigns to digitally engage with consumers, thereby increasing sales, productivity and return on investment. Aharon and the AutoLeadStar team are incredibly motivated. They’ve built a business that’s backed by a world-class product platform and go-to-market team, along with a relentless focus on customer success and quality, delivering tremendous growth and world-class software metrics.
Ramesh Venugopal joins AutoLeadStar’s mission of bringing top-notch technology to dealerships as a newest member of the Board of Directors. “We are thrilled to partner with such an energetic and dynamic team as they continue to support the digitalization of the automotive retail industry.”