BuildGroup Leads $14 Million Investment Round in DigniFi, a Modern Business Model that Matches Financing Solutions to Auto Dealers and Customers
AUSTIN, Texas–(BUSINESS WIRE)–BuildGroup, the first operator-led, permanent capital investment company focused on modern business models, announced today its investment in DigniFi, an AI-powered SaaS-plus financial platform that connects consumers with lenders for auto parts, repairs and services. BuildGroup led DigniFi’s $14 million Series A round.
The financing positions DigniFi and its network of 5,000 auto service center partners to get Americans back on the road at a moment when automobiles are more essential than ever. In addition, the company has signed an agreement with Neuberger Berman Private Equity to purchase up to $275 million of assets. Leveraging data from more than $120 million in loan originations to date, its online machine learning platform is powered by proprietary data sets and advanced automotive analytics to deliver access to customized loan offerings for consumers in need of car repairs.
“This round of financing further supports DigniFi’s expansion into a fully integrated, AI-powered SaaS-plus platform for point-of-sale financing at auto service centers,” said Jim Curry, co-founder and managing partner of BuildGroup. “By engaging all three audiences—lenders, customers and dealers—DigniFi is building a true marketplace that will only continue to grow as its machine learning system expands, it collects more data and as the number of lenders on its platform grows.”
The announcement follows BuildGroup’s recent investment in Benefitfocus (NASDAQ:BNFT), a modern business model that is driving rapid innovation for employers, health plans and consumers with more than 25 million users. BuildGroup’s investment strategy focuses on small-cap public companies and growth-stage ventures that operate as modern business models. These companies enhance the recurring revenue of SaaS offerings with AI, creating significant data assets and multifaceted revenue streams from networks of buyers, sellers and partners.
“DigniFi is pioneering the development of an end-to-end marketplace concept at the cross-section of financial services and auto repairs,” said Richard Counihan, CEO of DigniFi. “Our auto service partners are able to improve their margins through existing products and services that are core to overall profitability, while consumers receive greater access to affordable financing when they need it most. Debt purchasers, meanwhile, are introduced to a new asset class that creates more opportunities to build relationships with borrowers through the growing solutions category of point-of-sale financing.”
For more information on BuildGroup, its investment strategy and portfolio companies, visit www.buildgroup.com.
BuildGroup is the first operator-led, permanent capital investment company for modern business models. Headquartered in Austin, Texas, the firm invests in companies that include SaaS-based subscription revenues, significant data assets that leverage AI to create high volume and targeted offers, and multifaceted platforms that serve large, connected networks of buyers, sellers, users and partners. BuildGroup targets fast-growing private companies and small-cap public companies through PIPEs. For more information on BuildGroup, its investment strategy and portfolio companies, visit www.buildgroup.com.
DigniFi is a platform company that connects consumers with lenders for car repairs, tires, accessories, and other auto-related needs. The automated, contactless process serves up financial products through the point of sale at car dealerships and independent repair shops. DigniFi provides consumers with access to fixed payment plans from 12 to 36 months. The loans are originated through WebBank, an FDIC-regulated bank. To date, DigniFi has provided access to over $120 million in loans in partnership with more than 5,000 auto service centers. For more information, please visit www.dignifi.com.
Red Fan Communications