SparkServ Announces Seed Funding; Spark AI
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January 28, 2026, 17:12 GMT
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SparkServ announces Seed Funding; Spark AI, marking a new era of fixed operations efficiency for retail automotive.
DENVER, CO, UNITED STATES, January 28, 2026 /EINPresswire.com/ -- Automotive technology companies are using AI to solve the wrong problems. Most AI companies in the space focus on replacing humans. SparkServ is turning that notion on its head, announcing its seed funding in a round led by New Stack Ventures, with additional participation by Automotive Ventures. Amidst this new round of funding, SparkServ is rolling out a novel AI product to deliver a turnkey increase in customer retention to auto dealers, without replacing the human touch.
Advancing Market Share Growth and Retention for Dealerships
Used by dealer groups across the United States, SparkServ has been responsible for generating more than 300,000 additional service appointments since its founding. Today, dealerships currently own only 30% of service market share, losing most of their customer base to quick lube and independent shops. SparkServ’s mission is to provide automotive retailers with products to increase market share, while continuing to optimize for the customer experience.
After generating a more than 20% increase in average gross margin with SparkServ’s Service CRM, SparkServ CEO McKenna Valley is doubling-down on customer retention for dealers. “SparkAI is our answer to lackluster customer retention,” says Valley. “By the time a customer picks up their phone to call a dealership, they’re at the end of their journey. Dealers are competing to get their names on search results that are increasingly driven by AI. With Spark AI, we’re proactively reaching the customer with a timely, relevant offer that gives dealers the best possible chance to retain their customer base.”
Redefining Automotive Fixed Ops Through AI
Alongside their funding round, SparkServ announces the release of Spark AI, an autonomous SMS agent that proactively reaches out to customers, allowing dealers to generate more service appointments without lifting a finger. Spark AI aims to bring the dealership scheduling experience into the 21st century, reducing the burden of missed calls in the service bay. The name of the game, Valley says, is personalization. “Different customers find different offers compelling. A Silverado driver behaves and is incentivized very differently than a Navigator driver, for example,” says Valley. “Our AI-agent is evaluating and personalizing messages in real-time to get inactive customers back in the service drive for good.”
Announcing a Seed Investment
Investors are optimistic at the potential that Spark AI can bring to dealerships, and feel that this marks a seismic shift in the future of service in retail automotive. “Dealerships are on the cusp of realizing transformational operational changes with AI,” says Steve Greenfield, General Partner of Automotive Ventures. “We’re very excited as an investor to find entrepreneurs like MK who are working on transformational solutions for fixed operations. And I think we’re just barely scratching the surface.”
We are optimistic at the potential that Spark AI can bring to dealerships, and feel that this marks a seismic shift in the future of service in retail automotive. "Our investment in Spark reflects our belief that AI-enabled workflow tools will redefine how fixed operations run inside dealerships—a market that has been long constrained by fragmented systems and service teams that are overlooked, despite complex manual coordination," says Luke Skertich, Principal at New Stack Ventures. “Over the course of over 6 months, we had the chance to get to know McKenna personally and watch her build Spark from the service lane outwards, side-by-side with the very BDC reps she serves. Her relentless customer focus and ability to translate rep pain points into tangible product value gave us deep conviction in her vision. Spark isn’t automating away dealership staff but rather is equipping them to operate with greater speed, precision, profitability, and job satisfaction. We believe the Spark team is on track to become the indispensable System of Record underpinning how service departments communicate and grow. We feel fortunate to partner with such an incredible and dedicated team!"
What’s Next
With this new round of funding and the launch of Spark AI, SparkServ is redefining customer retention efforts for dealership service centers. By helping dealers proactively engage customers and provide personalized messaging, SparkServ is arming dealers with a commanding advantage in an increasingly competitive landscape.
To learn more about SparkServ, contact mk@sparkserv.com or visit www.sparkserv.com.
McKenna Valley
SparkServ
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