A DFW automotive-focused fintech company is continuing to drive its platform's rollout with a new funding line.
Car Capital, a wholly owned subsidiary of Car Capital Technologies that lists its address in Grapevine, announced closing its second major deal of the month with a $20 million credit line deal with New York firm Medalist Partners.
The debt deal comes on the heels of Car Capital closing on an $8.8 million Series A round at the beginning of the month. That deal we led by FM Capital and saw more than 50 other investors participate, including Medalist Partners. At the time, the company said the funding would expand its beta operations to more dealership partners.
"We saw a need in the market for a technology solution that helps franchise and independent dealers sell more cars to underserved consumers," said Justin Tisler, co-founder and CEO at Car Capital, after the Series A announcement. "We want our dealer partners' customers to feel confident when shopping for a car at the dealership that approvals can be available to all."
According to Car Capital's website, its vision is to "make the financing process easier" for auto dealers and consumers. It does that through a proprietary web platform that allows auto dealer partners to make changes to deal terms based on the vehicle being purchased and the consumer's finances.
The company currently operates in Texas and Oklahoma, and other states in the Southeast and Midwest. The new deal with Medalist will expand its dealer reach as it looks to expand into more markets.
"We are planning to significantly expand our dealer network and grow our revenue with this additional capital," Tisler said in a statement.
The Car Capital news isn't the only recent activity in the local automotive financing space. At the tail end of 2020, Arlington-based SaaS company Agora Data completed what it said was the first-ever crowdsourced auto securitization worth a little less than $100 million. In another big deal last year, publicly traded CarGurus inked an agreement to scoop up 51 percent of local instant vehicle trade platform CarOffer.
