CARiD (a leading e-commerce platform specializing in car parts and accessories) announced the closing of a $35 million funding round. This milestone is a testament to the company’s innovation and the successful execution of its strategic turnaround plan. This funding round will further drive expansion and technological advancements and enhance customer service capabilities. This solidifies CARiD’s position as a frontrunner in the automotive e-commerce sector.
Launched in 2008, CARiD grew from a startup into one of the most comprehensive and user-friendly platforms for automotive parts and accessories. Providing an extensive selection of high-quality products across various categories, the company also caters to automotive needs of all kinds, from everyday drivers to car enthusiasts and professional mechanics. Plus, CARiD’s approach to customer service – which includes expert advice and personalized support, has set it apart in a competitive market.
Earlier this year, Fifth Star invested $35 million in CARiD to acquire a majority stake. Fifth Star operates consumer and consumer-adjacent technology businesses. This funding marks a significant vote of confidence in CARiD’s business model, growth strategy, and commitment to serving the automotive community.
Through a customer-centric approach, expansive product range, and significant financial backing, CARiD is prepared for accelerated growth and continued success in the automotive e-commerce industry. This timing for such growth is critical, as the average age of the average car on U.S. roads is hitting an all-time high of 12.5 years. This aging fleet represents a sustained driver for growth within the automotive aftermarket industry.
The $35 million in funding will be strategically invested in several key areas:
1.) Broadening the range of products available to customers, including the latest automotive parts and accessories innovations.
2.) Enhancing the online platform with advanced features and capabilities to improve the shopping experience, including AI and machine learning tools for personalized recommendations.
3.) Improving the company’s customer service offerings, ensuring that CARiD continues to provide unparalleled support and advice to its customers.
4.) Offering competitive prices and maximizing customer value by utilizing strategic data science and streamlined supply chain management. And this approach reinforces the company’s dedication to affordability without compromising on quality.
KEY QUOTE:
“This funding positions CARiD to accelerate our growth, innovate further, and continue improving the way people shop for car parts and accessories. It’s a testament to the hard work of our team and the loyal support of our customers. This strategic positioning, combined with the clear upward trajectory of the auto parts market, solidifies our confidence in CARiD’s capacity for remarkable growth and innovation. Our vision for CARiD is more ambitious than ever, and we are excited about the future.”
– Lev Peker, CEO of iD Auto, parent company of CARiD
