- Modal — a company that provides e-commerce to the world’s leading automotive dealers and brands — announced that it has raised $15 million in Series A funding. These are the details.
Modal — a company that provides e-commerce to the world’s leading automotive dealers and brands — announced that it has raised $15 million in Series A funding led by its newest automotive partner American Honda with existing investors participating in and completing the round. And Modal’s automotive e-commerce platform enables car dealers and brands to deliver contactless, optimized, and fully transacted online buying that fits inside their own webpages, while increasing sales profits by up to 80%.
Since the pandemic started, Modal has experienced a surge in demand — which has generated a 700% increase in online-checkout customers and has achieved profitability in May 2020. The additional capital is being used to scale Modal’s team to develop new e-commerce technologies and further streamline the online transaction and ownership experience, including finance, insurance, contract, and service.
American Honda has worked with Modal since 2018 to create branded online-buying tools for Honda and Acura. And these tools are integrated with dealer websites and inventories, enabling customers to quickly select a vehicle and secure financing from select lenders, including Honda Financial Services and Acura Financial Services. Honda Xcelerator — an open innovation program that facilitates win-win partnerships between start-ups and Honda business units globally — supported the collaboration between American Honda and Modal. Modal was a featured start-up in Honda’s display at CES 2020.
KEY QUOTES:
“Our new financing will allow us to further distinguish our offerings and customer experience as an industry innovator. Working with leading brands such as Honda and Acura has been our vision since launching five years ago, and we cannot wait to show more dealers and brands the power of Modal’s e-commerce design and technology.”
— Aaron Krane, CEO and founder of Modal
“Modal delivers the best consumer experience, which is what sets it apart. It’s designed with the buyer in mind. We’re selling an average of 30-40 cars per month with Modal. Earlier in the year, we were even earning 25% more back-end profit on Modal orders.”
— Luke Moore, Digital Experience Manager at Bob Moore Automotive Group, the largest automotive group in Oklahoma
