Modal, a US-based e-commerce software provider for automotive dealers and brands, closed a $15m series A round yesterday led by car manufacturer American Honda.
The round was backed by venture capital firm Pegasus Tech Ventures and unnamed existing investors.
Founded in 2015 as Drive Motors, Modal offers e-commerce software that lets automotive retailers list vehicles using their existing online presence, in addition to facilitating in-showroom contactless sales and valuations of used vehicles.
The company will use the series A capital for recruitment and product development. Honda first worked with Modal through its Honda Xcelerator and began using its technology in mid-2018.
Modal secured $5m in a June 2019 round featuring automotive dealer holding group Idom and Ally Ventures, the venture capital arm of financial services holding firm Ally Financial, and private investor Peter Thiel.
Bullpen Capital led the company’s $5.2m seed round in 2017, investing alongside existing backers including artist management agency Emagen Entertainment Group, law firm Perkins Coie, Y Combinator and Khosla Ventures.
Modal had already raised $1.5m in seed funding in 2016 from Propel Venture Partners, the VC firm funded by financial services firm BBVA, as well as Khosla Ventures and angel investor Gil Penchina, according to TechCrunch.
This story was amended on December 29 to reflect Pegasus Tech Ventures’ disclosure of its participation in the round.