Connected Car Platform Automatic Raises $24 Million

The maker of the connected car platform Automatic has announced a $24 million Series B round led by the investment arm of USAA, an insurance firm for military families. Others that are participating in the round include CDK Global and Comcast Ventures, as well as previous investors Y Combinator, RPM Ventures and Anthemis Group.

What is Automatic exactly?

“Automatic turns almost any car into a connected car,” explains the company in a press release. “By pairing Automatic’s award-winning connected car adapter and apps for iPhone, Android, and Web, drivers are able to enhance their driving experience with a host of connected services on the Automatic platform. Automatic helps customers drive safer and smarter – with applications that diagnose engine trouble, detect accidents and send emergency response, and help customers save money on driving.”

The product is available for $99.95 with no ongoing service fees, making it a very affordable option for the masses.

The new investment brings the total raised by the company to $32 million, and it enables Automatic to continue toward its goal of reshaping the car ownership experience with a host of connected car apps, built on the Automatic platform.

“Our mission is to transform the car ownership experience by enabling the world’s best developers to build world-class apps and services for your car,” said CEO and co-founder Thejo Kote. “Our new investors are two of the most well-respected and admired companies in their industries. Together, we are building the future of the connected car, today.”

The company will use its new investment to accelerate growth and continue the expansion of its recently launched app Gallery and Developer Platform. Automatic allows almost any car on the road today to connect to a massive number of third party car apps, from those that allow for expensing business mileage and managing small fleets, to coaching teenagers, to track racing. These apps are built using the Automatic Developer Platform and they allow cars to instantly reach a new level of intelligence and utility by unlocking the power of data in the vehicle’s onboard computer. In the coming period, the company plans to expand its developer platform and driver application offerings.

USAA, the leader of the latest round of funding, is one of the country’s foremost insurance and financial services providers for military families, known for its industry-leading customer satisfaction. Another participant is CDK Global, who provides state-of-the-art integrated technology solutions that power 27,000 car dealerships worldwide, six of the top 10 dealer groups, and the majority of all new car sales in the United States. By combining efforts, Automatic and CDK Global will be able to improve the sales and service experience for millions of car owners.

“Automatic is breathing new life into car ownership by connecting any car on the road today to a world of apps that help with everything from sending emergency assistance after a crash to easily filing expense reports,” said Victor Pascucci, head of Corporate Development at USAA. “This is an incredibly significant innovation for the automotive industry, and we are excited to invest in this future with Automatic.”

Greg Meyer, CTO of CDK Global, offered a similarly optimistic statement about the future. “Automatic is redefining the relationship between drivers and their vehicles through amazing experiences driven by software,” said Meyer. “They are fostering a robust development platform for the connected car. We share their vision of the future and firmly believe they offer the best connected car platform on the market, hands down.”