Dealership software provider myKaarma to grow service lane AI solutions after firm’s investment

Dealership service and parts software provider myKaarma received an investment from firm Warburg Pincus that the company said it will use to grow its artificial intelligence offerings.

Details of the transaction, which included a partial sale by H.I.G. Growth Partners — which previously invested in myKaarma — were not released. Warburg Pincus joined myKaarma’s board of directors as part of the deal.

MyKaarma’s Workflow AI platform designed for franchised auto dealership service departments automates the repetitive and time-consuming steps that drag down technician time, adviser efficiency and customer throughput.

“MyKaarma has more than tripled in size since 2022, and we are thrilled to now have Warburg Pincus as a strategic partner as we continue to expand our AI-enabled service lane and fixed operations solutions,” Ujj Nath, CEO of myKaarma, said in a statement. “With both H.I.G. and Warburg’s operational support and experience, we are further positioned to help dealerships maximize efficiency, revenue, and customer satisfaction across their service lanes.”

Nath was named an Automotive News All-Star in 2024.

H.I.G. Capital Managing Director Evan Karp in the same statement said Warburg Pincus is “the right long-term partner to support the company’s continued innovation and expansion, given their deep domain expertise and strong history of scaling software businesses.”

Warburg Pincus Managing Director Michael Ding said myKaarma is the market leader in service department technology.

“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 said in the same statement.

This article originally appeared on Automotive News.