WarrCloud Closes $900K Round, Led by Automotive Ventures
Updated: Jun 22, 2021
MICHIGAN –WarrCloud, a warranty processing automation SaaS company focused on franchised automotive dealers, closed its Seed Round in Q1 2021. The round was led by Automotive Ventures, with additional participation from Driven Capital Partners, Wise F&I and individual investors.
Our mission at WarrCloud is to drive increased profitability for the dealer, and we do that through tech-enabling their warranty processing. —Jim Roche, Founder and Executive Chairman of WarrCloud
Jim Roche, Founder and Executive Chairman of WarrCloud notes, “Our mission at WarrCloud is to drive increased profitability for the dealer, and we do that through tech-enabling their warranty processing. Warranty is one of the few remaining areas of the dealership that has little to no automation, yet it is critical to protect and improve profit margins, since warranty is the fastest growing segment of the dealer’s primary profit generator – service.”
While most people don’t think about the OEM warranty beyond knowing that ‘somebody else is paying’, OEM warranty work has grown more than 38% over the last 5 years, currently generating almost $24 billion in the U.S.
WarrCloud helps dealers in several ways:
Cost: WarrCloud utilizes cloud-based technology to dramatically drive down expense. Utilizing the traditional manual method, the average warranty claim takes 11 minutes to process and consumes 6.1% of the value of the claim. WarrCloud reduces this cost by over 50%, significantly enhancing dealer profitability.
Speed: WarrCloud can typically process all claims within 24 hours, greatly reducing submission and reimbursement times while improving the dealer’s OEM dashboard scores.
Focus: By off-loading administrative tasks like warranty processing, service personnel have more time to spend on improving the customer experience, which increases loyalty and repeat purchases.
Roche explains that, “Prior to WarrCloud, dealers suffered manual, time-consuming claims administration practices where costs cut deeply into service profits. Our proprietary technology platform enables dealers to speed reimbursements. In addition to improving their operations, WarrCloud clients avoid the looming risks associated with rapidly increasing warranty volumes in a time where the labor pool of qualified warranty administrators is disappearing.”
Steve Greenfield, CEO of Automotive Ventures, said, "WarrCloud is the right solution at the right time for the auto industry. Dealers are facing margin compression and need to focus efforts on finding efficiencies across all areas of their operations. WarrCloud’s strong value proposition helps dealers accomplish these goals."
“We're very excited that Automotive Ventures, Driven Capital, Wise F&I and the other participants in this funding round recognize WarrCloud's value in the automotive ecosystem and believe in our role in streamlining dealer processes via technology,” added Roche.
About WarrCloud
WarrCloud is a cloud computing technology platform that automates warranty processing for automotive dealers. By outsourcing back-office functions, dealers enhance profitability, streamline processes and improve focus on the customer experience. Visit www.warrcloud.com to find out more.