H.I.G. Growth Partners has sold a minority stake in its portfolio company myKaarma, a provider of end-to-end service lane technology for automotive dealerships. The purchaser is Warburg Pincus. As part of the transaction, Warburg Pincus will join the board of directors of myKaarma.
Headquartered in Long Beach, CA, myKaarma is an AI platform for franchise auto dealerships. Its technology is designed to streamline service leads, operations and payments; enhance customer experience; and improve service adviser and technician efficiency.
“We believe Warburg Pincus is a great addition as a long-term partner to support the company’s continued innovation and expansion, given their deep domain expertise and strong history of scaling software businesses,” said Evan Karp, managing director at H.I.G.
Michael Ding, managing director at Warburg Pincus, called myKaarma the market leader in service marketing, service lane technology and dealership payments.
“Fixed operations remains a critical profit engine for dealerships and OEMs, and myKaarma leverages innovative AI and embedded finance solutions to help clients deliver best-in-class consumer outcomes,” Ding commented. “We look forward to applying our expertise in automotive technology, integrated payments and generative AI to support the company’s continued growth.”
TD Securities advised myKaarma, and RBC Capital Markets was the financial adviser to Warburg Pincus.
