ForeverCar, a US-based provider of automotive repair protection plans, has secured $10m in a funding round led by CMFG Ventures, the strategic investment unit owned by insurance firm Cuna Mutual Group.
The round also featured venture capital firm KDWC Ventures and Jai Shekhawat, founder of vendor management software producer Fieldglass, in addition to unnamed existing investors. City Capital Advisors managed the round.
ForeverCar operates an online marketplace through which car owners can access a range of repair protection plans with precise quotes displayed. The round will help it extend its business to powering transactions for credit unions, banks, automotive insurers, car retail portals and vehicle dealers.
Brian Kaas, managing director of CMFG Ventures, said: “Financial and insurance industries are navigating exponential change in technology, competition and consumer needs, and we are looking for opportunities and investments that provide innovation and value to credit unions and their members.
“As we strengthen our ability to help credit unions deliver a better member experience, our investment in ForeverCar.com offers a strong example of how we are accomplishing that.”
Cuna formed CMFG earlier this year as part of an innovation strategy platform that involves analysing trends in the credit union and insurance industries. It will typically invest $1m to $5m in companies raising series A and B rounds, Kaas told Xconomy.