Volkswagen’s finance arm, VW Credit, has agreed to make an equity investment of an undisclosed amount in auto financing platform AutoGravity. This will be the company’s fifth round of funding since it was founded in 2015, bringing its total raised to more than $50 million. Andy Hinrichs, CEO at AutoGravity, said the company will use the funds to “accelerate in the face of rapidly growing consumer and industry demand.”
Also of note, VW will be using AutoGravity to power its Volkswagen Credit iOS and Android app. The app, which matches users with financing options for their VW vehicle purchase, will offer Volkswagen dealers a new source of potential clients. Volkswagen credit options are also now available to the 400,000 users who have downloaded the AutoGravity app.
Horst Meima, President and CEO at VW Credit said, “Customers are becoming more demanding of mobile technology and the world of auto financing is no exception.” Meima continued, “We are ready to become a leader in shaping this part of the industry and believe that AutoGravity can help get us there.”
AutoGravity aims to simplify the car shopping and financing experience by offering access to transparent loan and lease offers on a user’s mobile device. CEO Hinrichs notes that offering the service via a mobile app “saves time and improves satisfaction for all parties.” The app gives consumers up to four personalized financing offers on a vehicle of their choice before visiting a dealer. By providing the customer with this type of information up front, AutoGravity is arming consumers with the information they need to make educated purchase decisions.
At FinovateFall 2016, AutoGravity took home a Best of Show award. The company recently began offering its auto loan financing app to car shoppers in New Jersey. Earlier this year, AutoGravity landed a multi-million euro investment from Daimler, adding to the $50 million the company raised in 2015.