Since the pandemic, Modal has experienced an increase in demand, which has generated a 700 percent increase in online-checkout customers and has achieved profitability in May 2020.
Fremont, CA: Modal, which provides e-commerce to the world's leading automotive dealers and brands, has declared a $15 million Series A financing, led by its newest automotive partner, American Honda, along with existing investors participating in and completing the round. Modal's automotive e-commerce platform allows car dealers and brands to provide optimized, contactless, and completely transacted online buying that fits inside their own webpages while increasing sales profits by up to 80 percent.
Since the pandemic, Modal has experienced an increase in demand, which has generated a 700 percent increase in online-checkout customers and has achieved profitability in May 2020. The additional capital is being utilized to scale Modal's team to develop new e-commerce technologies as well as further streamline the online transaction and ownership experience, including finance, contract, insurance, and service.
"Our new financing will allow us to further distinguish our offerings and customer experience as an industry innovator," stated Aaron Krane, CEO and founder of Modal. "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."
American Honda has worked with Modal since late 2018 to create branded online-buying tools for Acura and Honda. These tools are integrated with dealer websites and inventories, allowing customers to quickly choose 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 worldwide, supported the collaboration between American Honda and Modal.
"Modal delivers the best consumer experience, which is what sets it apart. It's designed with the buyer in mind," stated Luke Moore, Digital Experience Manager at Bob Moore Automotive Group, the largest automotive group in Oklahoma. "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."