Chicago-based ForeverCar on Tuesday announced the closing of a $15 million debt and equity financing round.
The company operates a web-based platform that sells vehicle service contracts to car owners in all 50 states whose vehicles are not covered by a manufacturer warranty. In total, ForeverCar has raised more than $25 million in funding to date.
ForeverCar plans to use the funding to expand its financing solution through the capitalization of ForeverCar Consumer Credit, LLC. The company stated in a press release on Tuesday that it will also expand its “direct-to-consumer and business-to-business marketing, sales, and servicing capabilities.”
Existing investors that included CMFG Ventures, Method Capital LLC, SAP Fieldglass founder and former CEO Jai Shekhawat, and others contributed over $3 million to the financing round. ForeverCar stated it had also established a relationship with a new party to fund its growth through a $12 million debt facility. The transaction was managed by City Capital Advisors.
ForeverCar founder and CEO Mark Hodes on Thursday stated, “This capital raise signals continued confidence in our business model and belief in our unique customer value proposition. … Our talented team now has the tools needed to accelerate growth and drive consumer adoption of our solution by more than 200 million car owners who have an expired manufacturer warranty.”