Xtime Inc. said on Tuesday that it has raised $23 million to help fund its most ambitious expansion since it launched its auto dealer repair software in 2004.
CEO Neal East told the Business Journal that the Redwood City company has added four new auto brands as clients with plans to roll out software products for each at once in 2013. The expansion will be aided by the money from Menlo Park-based Bessemer Venture Partners, Ann Arbor, Mich.-based RPM Ventures, San Francisco-based firms Lumia Capital and Saints Capital.
The company’s cloud-based software powers scheduling and interactions with auto dealer customers, covering everything from those made by phone to those made online.
East declined to name the new brands, but Xtime’s existing clients include major automakers such as Lexus, Toyota, BMW, Nissan, Infiniti, VW, Audi, Chrysler and Hyundai.
Its latest offering powers the Blue Link in-car notification system in Hyundai’s vehicles. Among other things, Blue Link notifies drivers when their car needs service, offers a selection of local dealers that can do the work and an estimate of what it will cost. It can then be used to schedule the needed work.
“This is what all of the major auto dealers are going to offer in coming years,” East said, but for now it is just foreign brands from Korea, Japan and Europe that are showing interest.
Xtime started in 1999 as an online scheduler of all kinds of services but was revamped in its current form in 2004 by East and co-founder Adam Galper, who is its chief technology officer. They were brought in by Draper Fisher Jurvetson’s Steve Jurvetson, who was an investor in the original startup.
We have managed to post 70 percent compound growth in revenue and have been profitable through two of the worst downturns in auto sales in history,” East said. “But now we need to ramp up quickly, and this investment round will help that happen.”
Two new board members were added with the new funding, DFJ’s Heidi Roizen and Bessemer’s Jeremy Levine.