Modal, Honda Collaborate On Financing For eCommerce Platform

The surge in automotive online purchasing traffic sparked by the pandemic has led to increased demand for eCommerce. Hence the popularity of Modal’s automotive eCommerce platform, underlying the announcement Tuesday (Dec. 8) of a $15 million Series A financing. It is led by Modal’s newest automotive partner, American Honda, with existing investors participating in and completing the round.

“Our new financing will allow us to further distinguish our offerings and customer experience as an industry innovator,” said Modal CEO and Founder Aaron Krane. “Working with leading brands such as Honda and Acura has been our vision since launching five years ago, and we cannot wait to show more dealers and brands the power of Modal’s e-commerce design and technology.”

American Honda has worked with Modal, formerly Drive Motors, since late 2018 to create branded online buying tools for Honda and Acura. The tools are integrated with dealer websites and inventories, enabling customers to quickly select a vehicle and secure financing from select lenders, including Honda Financial Services and Acura Financial Services. Honda Xcelerator, is an innovation program that facilitates partnerships between startups and Honda business units globally. It supported the collaboration between American Honda and Modal.

“Modal delivers the best consumer experience, which is what sets it apart. It’s designed with the buyer in mind,” said Luke Moore, digital experience manager at Bob Moore Automotive Group, the largest automotive group in Oklahoma. “We’re selling an average of 30-40 cars per month with Modal. Earlier in the year, we were even earning 25% more back-end profit on Modal orders.”

Since the pandemic started, Modal has experienced a 700 percent increase in online checkout customers, and achieved profitability in May 2020. The additional capital is being used to scale Modal’s team to develop new eCommerce technologies and further streamline the online transaction and ownership experience, including finance, insurance, contract and service buying.