Numa Secures $32M to Revolutionize Auto Dealerships with AI Automation

Numa's Smart Pivot to AI Automation

Sometimes, a pivot ends up being the smartest decision company leaders can make. Think of Netflix's shift from DVDs to streaming or Corning's transition from lightbulbs to touchscreens.

A less-prominent but notable pivot is Numa’s. The startup originally focused on conversational AI but has shifted to providing customer service automation tools specifically for auto dealerships. This niche focus has proven profitable, with Numa recently closing a $32 million Series B round.

Tasso Roumeliotis, Numa’s CEO, stated, “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.”

Background of the Founders

Numa was co-founded in 2017 by Roumeliotis, Andy Ruff, Joel Grossman, and Steven Ginn. The team boasts experience from Microsoft, having worked on significant projects like Windows XP. This is their second venture together, with their first being Location Labs, which AVG acquired for $220 million.

The Automotive Opportunity

The U.S. has over 17,000 new-car dealerships, representing a $1.2 trillion industry. Many of these dealerships struggle with customer service requests, with a survey indicating that a third of dealers miss at least 20% of their incoming calls. Numa aims to tackle these issues by automating tasks such as rescuing missed calls and booking service appointments.

Numa's AI Solutions

Numa's platform enhances customer interactions by sending follow-up texts for missed calls and providing service status updates. Roumeliotis emphasized that many dealerships still rely on outdated systems, which fail to meet modern consumer expectations for fast and seamless service.

Numa’s competitors include smaller automation vendors and tech giants offering generic solutions. However, Roumeliotis believes Numa stands out due to its understanding of dealership workflows and how they affect customer experience.

Data-Driven Innovations

Numa utilizes in-house AI models trained on data from OEMs and dealership systems. The company currently has 600 customers across the U.S. and Canada, including the largest retail auto dealership globally. Roumeliotis claims Numa is approaching cash-flow break-even and does not require additional capital for scaling.

Future Growth

With a workforce of 70 employees, Numa is using its recent funding to accelerate product development and expand its team of AI and machine learning engineers. A recent survey indicates that 67% of dealerships are using AI to identify sales leads, and 63% have adopted it for service, showing a positive outlook for AI in the automotive sector.

Numa’s recent $32 million Series B round, led by Touring Capital and Mitsui, brings its total funding to $48 million.