MIAMI and JERUSALEM, Nov. 7, 2022 /PRNewswire/ --
AutoLeadStar, the digital customer data and experience platform for the automotive industry that transforms the way cars are sold, announced today a $40 million growth round of financing led by Riverwood Capital with the participation of existing investors.
AutoLeadStar is the leading AI-powered marketing automation technology for auto-dealerships and manufacturers —powered by its "Customer Data and Experience Platform" (CDXP) — enabling personalized marketing, digital commerce, and consumer engagement that informs and executes millions of decisions a day. In an increasingly digital economy where over 65% of consumers expect to complete most of the car buying process online, AutoLeadStar facilitates seamless actioning of a data-informed strategy for dealerships.
The iconic car dealership sector has been a fixture of US culture since the early 1900s. In the US alone it is more than a $1.5 trillion-dollar industry with a $150 billion annual spend on advertising, people, and operations and deep ties to local and regional economies, yet it remains ripe for digital transformation.
"The customer car purchasing experience is rapidly changing and the automotive industry is thirsty for new technologies to serve the modern consumer," said AutoLeadStar co-founder and CEO Aharon Horwitz. "AutoLeadStar is the industry's premier tech lab, where we partner with dealers to envision the robust digital systems, online processes, and software they need for an increasingly digitized business landscape. We are excited to partner with Riverwood Capital to double down on and expand our investment in the technology we can provide for auto retailers. Car dealerships are massive drivers of economic growth and value in communities, and especially given the current economic climate, we are proud to be helping dealerships succeed in the digital era. "
AutoLeadStar has been growing its revenues and scale at over 100% year-over-year for the past few years and the Company's software is used by nearly 1,000 dealerships across North America to intelligently automate once siloed, outdated, and manual systems. In this new financing round, Riverwood Capital joins existing investors including PICO Venture Partners, Target Global, and Aleph.
Francisco Alvarez-Demalde, Co-Founder and Managing Partner, Riverwood Capital commented: "AutoLeadStar is disrupting a market dominated by fragmented legacy solutions. The Company is providing dealerships with the most attractive software automation platform which consolidates data sources and implements hyper-targeted, sophisticated marketing campaigns to digitally engage with consumers, increasing sales, productivity, and ROI. Aharon and the AutoLeadStar team are incredibly driven. They have built a company that is anchored by a world class product platform and go-to-market team, and by a relentless focus on customer success and quality thus delivering tremendous growth and world class software metrics."
Ramesh Venugopal joins AutoLeadStar's mission in bringing top-tier technology to dealerships as the newest board member. "We are excited about partnering with such a high energy and dynamic team as they continue to support the digitalization of the automotive retail sector."
AutoLeadStar is the automotive retail industry's most trusted Customer Data and Experience Platform (CDXP), which unifies dealership's first-party data and leverages it to create seamless omni-channel marketing campaigns. Used by nearly 1000 dealerships across North America, AutoLeadStar's CDXP is advancing dealer tech adoption in this enormous segment of the economy.
About Riverwood Capital
Riverwood Capital invests in high-growth companies in the technology and technology-enabled industries. Riverwood offers a unique combination of operational, strategic, technology, and financial insight to a selective group of portfolio companies that can benefit from growth capital and expertise to scale business. Riverwood has offices in Menlo Park, CA; New York, NY; Miami, FL; and São Paulo, Brazil.