Nine months after announcing a $ 5 million funding round, Toronto-based auto repair software company AutoLeap is back with $ 18 million in Series A funding, this time led by Bain Capital Ventures.
Existing investor Threshold Ventures, who led the round, joined Bain in the round, to give the company total funding of $ 23 million.
Co-CEO Steve Lau told TechCrunch that AutoLeap is bringing the auto repair shop into the 21st century by reducing the number of dual- or triple-entry shop owners who typically have to digitize their workflow. – customer quotes, invoices and quotes for work – and the processing of all of this in backend accounting. It also provides a sales and marketing component through customer relationship management, scheduling through app, customer SMS or emails and online reviews.
Since the roundtable and launch last year, the company has grown âwell beyond expectations,â said Lau. From a team perspective, the company has grown five times and its customer base has grown tenfold. Revenue also continues to grow month by month.
“We are more convinced of the opportunity of the market and of our integration,” he added. âOne of our first customers also recently said that in the first 10 months of using AutoLeap, his store has doubled its revenue. It has a real impact on their lives. “
Growing a business is second nature to Lau, who, along with co-CEO Rameez Ansari, spent four years as co-CEO of FieldEdge, a SaaS company that helps entrepreneurs run their small businesses. They took the company to 200 employees in over three years, which got them started with AutoLeap, Lau said.
The company’s team is spread across Canada, the United States and Pakistan. Most of its customers are in the United States – 85% – and the rest in Canada.
Lau estimates that the automotive aftermarket is a $ 700 million industry, with 1 million technicians and 300,000 stores.
“We are only in the second round of this market which is moving from pen to digital,” he said. âMuch of the new capital will be used to seize this market opportunity and hire a world-class team to help us deliver a better product and better customer service.â
He expects to triple AutoLeap’s workforce over the next 12 months and will focus on building a diverse employee base.
Ajay Agarwal, partner at Bain Capital Ventures, said via email that “small businesses are the backbone of our economy” and as seen in other sectors, such as consumer brands, restaurants and retail. Retail, business owners are looking for modern cloud software that allows them to stay competitive and deliver a better experience to customers.
âWe couldn’t be more excited to partner with Steve and Rameez as they tackle the huge opportunity to help the 300,000 independent auto repair shops take their businesses to the digital age, âAgarwal added. âAutoLeap brings a combination of a complete SAAS platform with integrated payments and an auto repair shop marketplace, one of the last verticals to make the leap to the cloud again.â