Numa Raises $32M to Expand AI and Automation for Car Dealerships

Sometimes, a pivot can change the trajectory of a company. While it may not be as well-known as other famous pivots, Numa’s shift from a conversational AI startup to a company focused on automating customer service for auto dealerships has proven highly successful. In September, Numa closed a $32 million Series B funding round to expand its AI-driven platform.

The Shift to Automotive and Customer Service Automation

Numa’s pivot to the auto industry was a strategic decision based on the enormous potential the sector offers, according to Tasso Roumeliotis, the company’s CEO. “We were early to build AI and conversational commerce, but we decided to focus our AI entirely on the automotive vertical after identifying enormous opportunity in that space,” Roumeliotis said.

Founded in 2017 by Roumeliotis, Andy Ruff, Joel Grossman, and Steven Ginn, Numa’s co-founders previously worked together at Location Labs, which was sold to AVG for $220 million. Their shared belief in AI’s transformative power is what brought them together to start Numa.

A Tailored Solution for Auto Dealerships

The U.S. has over 17,000 new-car dealerships, representing a $1.2 trillion industry, but many dealerships struggle with customer service inefficiencies. A survey found that one-third of dealerships miss at least 20% of incoming calls, which negatively impacts their customer service scores and, in turn, sales.

Numa addresses these issues with its AI-driven automation tools. The platform automates tasks like following up on missed calls, scheduling service appointments, providing real-time service updates, and facilitating trade-ins by collecting necessary information. Numa’s focus is on improving communication and reducing inefficiencies, especially in areas where legacy systems fail to meet customer expectations for fast, seamless interactions.

“Numa offers an end-to-end solution that prioritizes the needs of the customer: car dealerships,” Roumeliotis explained. “Dealership service leaders and employees are running around constantly...Numa brings that all together in a way intentionally designed with AI and the user inside the dealership to drive how the platform works rather than the other way around.”

Numa’s In-House AI Models: A Competitive Edge

According to Roumeliotis, one of Numa’s key advantages lies in its in-house AI models, which power the platform’s automations. These models have been trained using a combination of datasets from OEMs, dealership systems, and conversation data between dealerships and their clients.

When asked whether Numa’s clients, OEMs, and dealerships were informed that their data was being used to train these models, Roumeliotis declined to provide specifics. He explained that the models are developed through a feedback loop between dealerships, customer interactions, and the platform’s ongoing usage, facilitating the training process.

AI-Powered Solutions for a Growing Market

Numa isn’t the only company offering AI-driven solutions for auto dealerships. Other automation vendors, like Brooke.ai and Stella AI, provide similar services, and large tech companies offer broader customer service automation tools. However, Roumeliotis argues that Numa stands out due to its in-depth understanding of dealership workflows and its in-house models, which were trained using data from OEMs and dealership systems.

While privacy concerns around data usage exist, Numa’s growing customer base seems unperturbed. The company currently serves 600 dealerships across the U.S. and Canada, including the largest retail auto dealership in the world.

Expanding with New Funding and AI Advancements

With the $32 million raised in its Series B round, Numa plans to continue expanding its AI and machine learning team and accelerating product development. According to Roumeliotis, the company is nearing cash-flow break-even and will use the new funding to further invest in AI models tailored to the automotive industry.

Touring Capital and Mitsui led the Series B round, alongside Costanoa Ventures, Threshold Ventures, and Gradient Ventures (Google’s AI-focused venture fund). This latest funding brings Oakland-based Numa’s total raised to $48 million.

AI Adoption in the Auto Industry

Numa’s growth coincides with a broader trend in the auto industry toward adopting AI to streamline operations. According to a CDK Global survey, 67% of dealerships are using AI to identify sales leads, while 63% have deployed AI for service-related tasks. With dealerships bullish on AI’s potential, Numa’s tailored solutions appear well-positioned for continued growth.

Looking Ahead: A Future of AI-Driven Dealerships

As the auto industry increasingly embraces AI, Numa’s focus on customer service automation gives it a competitive edge. With new funding and a growing team, Numa is poised to lead the transformation of auto dealerships, helping businesses meet the rising expectations of modern consumers.