First Move Capital and Automotive Ventures Lead Round
WarrCloud, Inc announced today that it has closed its Series Seed investment. The round was led by First Move Capital (FM Capital) with additional investment from Automotive Ventures. This marks the first institutional investors fundraise for WarrCloud, which is the industry’s first – and only – technology platform for warranty processing.
Developed by automotive industry tech pioneers, WarrCloud automates the processes related to coding, submission, and dealer payment for OEM warranty submission. Franchise dealers rely heavily on their service business to drive profitability, and warranty is the fastest growing segment of the dealer’s service business.
“We recognized very early on that warranty processing was becoming increasingly burdensome for dealers, with the costs related to manual processing of warranty consuming 6.1% of the repair order value," said Jim Roche, WarrCloud Founder and Executive Chairman. “Closing this funding round with FM Capital and Automotive Ventures is a pivotal moment for our business as it will allow us to accelerate our dealer outreach, scale solutions across OEMs and generate more groundbreaking tools to further automate the automotive warranty ecosystem.”
The funding will be allocated toward increasing WarrCloud’s service and platform offering, supporting its innovative development and IP, attracting key talent and accelerating growth domestically.
“Warranty is becoming a hot-button topic in the automotive industry, especially as dealers rely more heavily on the service department for profit contribution,” said Chase Fraser, Managing Partner at FM Capital. “WarrCloud is the first-mover in this space. The solution is more accurate, more expedient, and ultimately lowers a dealer’s overall costs.”
WarrCloud provides proprietary machine learning enabled software that assists franchise automotive dealerships and OEMs by streamlining and automating the otherwise complex and costly process of warranty claims administration between the parties. WarrCloud currently services the North American market, where clients report on average cost savings in excess of 50%. For more information contact firstname.lastname@example.org.