DigniFi, the Kirkland, Wash.-based tech platform that helps drivers finance auto repairs and services, has raised $14 million.
The Series A funding was led by BuildGroup and Exor Seeds. Neuberger Berman, a global investment manager, will provide up to $275 million in additional financing to support the company’s growth, according to a news release Tuesday.
The company is touting its services, tied to 5,000 U.S. repair centers, as especially critical during the coronavirus pandemic because of the need for many to avoid crowded public transit and drive their own automobiles.
“After months of financial uncertainty, Americans are eager to get back to work, and many will need their cars in working order to do that. Our network of auto service centers has grown by 500 locations over the last 90 days, spurred by this rising demand,” Richard Counihan, CEO of DigniFi, said in a statement. “With BuildGroup, Exor, and NB backing us, we have never been in a better position to serve drivers and auto shops. Our platform will stimulate local economies and help America recover strong.”
The average car repair costs between $500 and $600 according to AAA numbers cited by DigniFi. Many consumers take on credit card debt or loans to cover repairs. DigniFi’s platform partners with auto service centers to offer access to financial products for repairs, tires, accessories, and other automotive needs.
Franchise dealerships and independent auto shops use DigniFi. Customers are able to apply by smartphone and receive an instant decision from a lender.
The company, founded in 2013, has 100 employees and has attracted more than 40,000 customers. DigniFi says its platform has provided access to over $120 million of financing covering such things as financing and insurance, sales, parts and accessories, service, and collision.
DigniFi is not alone in targeting the pain points of car repair with a tech platform. Seattle-based Wrench raised $20 million last fall to further fuel its mobile mechanics and expansion across the U.S.
