Jerry, an AI-based car ownership startup based in Palo Alto, has raised $75 million in a Series C financing round to continue facilitating car ownership to thousands of users.
The funding round, which was oversubscribed, was led by Goodwater Capital and counted with the participation of Bow Capital, Kamerra, Park West Asset Management, and Highland Capital Partners. The round valued the company at $450 million and increased the total funding raised by the startup to $132 million. Chi-Hua Chien, Partner at Goodwater Capital, referred to Jerry’s the firm’s reinvestment by stating:
“The company’s super app approach to saving customers time and money on all car expenses also extends the potential customer base across auto-related categories. Our re-investment in Jerry reflects our confidence in the company’s business model, growth rate, addressable market, and AI- and ML-based technology that continues to increase gross margins.”
Jerry’s app allows its users to save time and money on car expenses by using artificial intelligence and machine learning to compare different insurance plans and other expenses. Since being launched in 2019, it has been used by more than 1 million customers in all 50 states.
The startup will be using the new funding to accelerate the development and launch of its new vehicle financing, repair, warranties, and parking maintenance marketplaces. With driving being the most dominant form of transportation for people in the United States, reducing the cost of personal car ownership is a growing concern for car owners. Rafi Syed, Jerry board member & general partner at Bow Capital, referred to this trend by stating:
“Access to reliable and affordable transportation is critical to economic empowerment. Jerry is helping car owners make the most of every dollar they earn. While we see Jerry as an excellent technology investment showcasing the power of data in financial services, it’s also a high performing investment in terms of the financial inclusion it supports.”
The car ownership startup has seen increasing adoption with high levels of customer satisfaction, allowing it to expand its operations to Toronto, Lockport, New York, and hiring remote staff. Now, it is looking to grow from being a licensed insurance broker to a more comprehensive marketplace.