Car IQ brings innovation to the $600 billion connected vehicle payment market by enabling vehicles to control the purchase of their own fuel and services.
SAN FRANCISCO, Feb. 7, 2023 /PRNewswire/ — Car IQ Inc., a leader in vehicle payments, today announced it exceeded its fundraising target with a $15 million addition to the Series B. The round was led by Forte Ventures with participation from existing investors including State Farm Ventures®, TELUS Ventures, and Avanta Ventures (the corporate venture arm of CSAA Insurance Group). New strategic investors Visa, Bridgestone, Navistar, and Circle K also joined the round, which brings the total funding raised to-date to $42 million.
Founded in 2016, Car IQ created a new form of machine identity verification allowing vehicles to connect directly with banks and service providers and make purchases without the use of a physical credit card. The company’s product, Car IQ Pay, offers commercial fleets an easier way to pay for fuel, tolls, and parking by leveraging vehicle data to automate the payment process. This allows fleets to manage their spending more effectively, develop unique insights, and reduce fraud. Currently Car IQ Pay is accepted at over 21,500 fuel stations nationwide including Shell, Sunoco and others across the US.
The new funds will be used to accelerate the expansion of the Car IQ payment platform in the face of increasing demand from customers and merchants, and to add new commerce categories such as electric vehicle charging, repairs, registration, and insurance.
“These funds will allow us to move faster and meet the market demands from fleets in the commercial and OTR trucking spaces,” said Sterling Pratz, CEO of Car IQ. “Incorporating vehicle data to the payment transaction is a game-changer: we can determine what the vehicle needs before it buys, validate the purchase after the fact, and make the experience for the driver completely frictionless.”
“Car IQ continues to excel in today’s challenging economic climate,” said Louis Rajczi, partner of Forte Ventures. “The company’s patented technology, ability to attract strategic investments from major fintech and automotive companies, and high-level commercial partnerships are laying the groundwork for rapid growth of their vehicle payment solution.”
Market sizing source: Ptolemus Consulting Group, The Connected Vehicle Payments Global Study, 2020.
About Car IQ Inc.
Car IQ® has created a payment network for cars that eliminates the need for physical credit cards and enables vehicles to connect to merchants and transact securely. Using Car IQ Pay vehicles can automatically initiate and complete payments for services ranging from fueling, toll management, paid parking, EV charging, and more. Car IQ’s payment solution delivers value by reducing fraud and risk for fleets and participating merchants. For more information, visit www.cariqpay.com.
About Forte Ventures
With offices in Atlanta and Silicon Valley, Forte Ventures is a multi-stage venture capital firm that collaborates and co-invests with corporate strategic partners in technology companies throughout the U.S. and Canada. The team simultaneously focuses on helping entrepreneurs navigate the complexities of corporate investment and on serving as trusted partners to institutional and corporate strategic syndicate partners. For more information, visit www.forteventures.com