Car IQ, a San Francisco-based provider of vehicle payment solutions, has raised $15 million in additional Series B funding.
Forte Ventures led the round, which brings the total funding raised to $42 million, with participation from State Farm Ventures, Telus Ventures, Avanta Ventures, Visa, Bridgestone, Navistar, and Circle K.
The funds will be used to accelerate the expansion of the company’s payment platform as well as to add new commerce categories such as electric vehicle charging, repairs, registration, and insurance.
According to Sterling Pratz, what has been created is essentially a vehicle wallet that goes beyond storing money and storing value. Instead, it distributes value through multiple purses inside each wallet. These purses can be used for different purposes such as loyalty rewards, payments, driver incentives, and more. The unique aspect of this vehicle wallet is that value can be added to each purse, providing a more versatile and efficient solution for managing different types of rewards and incentives.
He went on to say that the mindset Car IQ wants to maintain is one of simplicity and a single payment.
Car IQ pioneered a new type of machine identity verification that enables vehicles to communicate directly with banks and service providers and make purchases without the use of a physical credit card. Car IQ Pay, the company’s product, makes it easier for commercial fleets to pay for fuel, tolls, and parking by leveraging vehicle data to automate the payment process. This enables fleets to effectively manage their spending, develop unique insights, and reduce fraud. Car IQ Pay is currently accepted at over 21,500 gas stations nationwide, including Shell, Sunoco, and others.
