As if competition weren’t already pressuring margins, Mojo Motors has snared $3 million in series A financing to help expand its vehicle discount site.
Boston-based Mojo Motors operates a free website that guarantees the lowest prices on the internet, granting members access to exclusive discounts on thousands of vehicles and sending personalized alerts when dealers drop prices. When a consumer is ready to buy, he prints a discount voucher and takes it to the dealership to purchase the vehicle. As of March, the site had more than 25,000 users.
The recent funding is being led by Atlas Venture, with participation from existing investors RPM Ventures, NextView Ventures, and others. The round brings the startup’s total to just under $5 million.
The company plans to use its latest capital infusion to expand into a slew of major markets over the course of the year, including Tampa, Fla., as well as to ramp up hiring and marketing efforts, according to a recent post on TechCrunch. The company has been working with 78 dealers in New England and recently entered the Dallas market.
Mojo Motors is attracting dealers by charging a fee only when sales are made. Though somewhat pricey at $350, listings on the site may also lead used-car dealers to more showroom visitors. By comparison, sites like eBay Motors, AutoTrader, and Cars.com require dealers to pay upfront costs to advertise inventory.
