Shopmonkey Raises $75M Series C Funding - Auto Repair Software

Modernizing Auto Repair with Shopmonkey

Entering an automotive repair facility can, at times, evoke a sense of stepping back in time. Traditional practices like manual record-keeping and outdated systems for sales and scheduling often leave customers feeling as though they are experiencing a business from the 1990s, rather than the current century.

Shopmonkey is actively working to modernize this experience.

“The automotive industry presents a remarkable opportunity for improvement, having lagged behind in adopting contemporary services and technologies by a significant margin – perhaps five to ten years,” stated Shopmonkey CEO Ashot Iskandarian in a recent TechCrunch interview.

Securing Series C Funding

The company provides a cloud-based shop management software specifically tailored for the auto repair sector. Following a $25 million Series B funding round announced less than a year ago, Shopmonkey has successfully secured another substantial investment.

A $75 million Series C round has been completed, led by existing investors Bessemer Venture Partners and Index Ventures. Additional participation came from returning investors Headline and I2BF, alongside new investor ICONIQ Growth.

These funds will be allocated to expanding Shopmonkey’s teams focused on product development, sales, and marketing, and to accelerate the ongoing evolution of its platform.

Addressing Inefficiencies in Auto Repair

Iskandarian observed that many auto repair shops were hindered by fragmented workflows. Owners frequently found themselves managing numerous disparate tools and platforms for essential tasks such as invoicing, appointment scheduling, and parts procurement.

Alternatively, they relied on shop management systems installed on a single, localized computer. “This represents the typical operational environment for many shops,” he explained.

Shopmonkey offers a solution by integrating these diverse functions into a unified, cloud-based platform. This allows access from multiple devices, including computers, tablets, and smartphones.

The software also enhances customer communication, facilitating appointment reminders, confirmations, and the presentation of relevant service upgrade options.

Growth and Market Trends

Founded in 2017, Shopmonkey has grown its team to over 125 employees. Currently, more than 2,500 auto repair shops utilize the software.

Iskandarian noted that evolving demographics among shop owners, coupled with increasing customer expectations, are driving greater demand for comprehensive management solutions.

The automotive repair industry experienced challenges during the coronavirus pandemic. However, it is now demonstrating strong recovery. One report projects a 7% growth rate for this year, fueled by increased vehicle usage and used car sales.

This positive outlook benefits both auto repair shops and Shopmonkey, which anticipates capitalizing on this growing demand.

Iskandarian stated that COVID-19 and related factors have created “significant momentum within the automotive aftermarket, particularly concerning used vehicle sales, repairs, and the sector as a whole.” He added, “It’s an opportune moment for entrepreneurs and for businesses operating in the auto repair industry.”