H.I.G. Growth Partners, the growth equity affiliate of H.I.G. Capital, has sold a minority stake in portfolio company myKaarma to Warburg Pincus, bringing the global growth investor onto myKaarma’s board of directors as the dealership software provider enters its next stage of expansion.
The transaction adds Warburg Pincus as a significant shareholder alongside H.I.G. Growth, positioning myKaarma to accelerate product development and scale across the service lane and fixed operations market for franchise auto dealerships. Terms of the deal were not disclosed.
Based in Long Beach, California, myKaarma provides an end-to-end, cloud-native “Workflow AI” platform designed to streamline dealership after-sales operations. Its suite covers communications and customer engagement, appointment scheduling, payments, video inspections, analytics, and related tools aimed at improving service advisor and technician productivity while driving higher customer satisfaction and measurable revenue gains for dealers.
H.I.G. Growth said myKaarma has expanded materially since its initial investment, citing product innovation, category expansion, operational execution, and growth in its customer base. myKaarma’s CEO said the business has more than tripled in size since 2022 and expects additional AI-enabled opportunities ahead.
Warburg Pincus framed the investment around the strategic importance of fixed operations as a profit engine for dealerships and OEMs, and said it plans to apply its experience in automotive technology, integrated payments, and generative AI to support myKaarma’s continued growth.
Houlihan Lokey and TD Securities advised myKaarma, while RBC Capital Markets served as financial advisor to Warburg Pincus.
KEY QUOTES:
“We are proud of the transformation and growth myKaarma has achieved during our ownership. We believe Warburg Pincus is a great addition as a long-term partner to support the company’s continued innovation and expansion, given their deep domain expertise and strong history of scaling software businesses.”
Evan Karp, Managing Director, H.I.G.
“In partnership with the H.I.G. Growth team, myKaarma has more than tripled in size since 2022, and we believe the most exciting, AI-enabled growth opportunities still lie ahead. We are thrilled to now have Warburg Pincus join as a significant investor in our company. With both H.I.G. and Warburg’s operational support and experience, we are poised to become the dominant player in service lane and fixed ops technology.”
Ujj Nath, CEO, myKaarma
“myKaarma is the market leader in service marketing, service lane technology, and dealership payments, distinguished by its exceptional customer advocacy. Fixed operations remains a critical profit engine for dealerships and OEMs, and myKaarma leverages innovative AI and embedded finance solutions to help clients deliver best-in-class consumer outcomes. We look forward to applying our expertise in automotive technology, integrated payments, and generative AI to support the company’s continued growth.”
Michael Ding, Managing Director, Warburg Pincus
