CarmaCare is a revolutionary tech startup that is introducing healthcare for vehicles to the market. Founded by Jonathan Palan in 2021, he combines his experience in AutoFi, LendingClub, and Kiavi to provide an easier way to buy extended warranties. Recently, CarmaCare closed a $4.5 million funding round at the end of 2021 and this helped accelerate their “healthcare-for-your-car” subscription service.
The new CEO Jamie Ahern is recently appointed to the project. With years of experience in LearnVest and Kin Insurance, Jamie brought the company a more consumer-friendly approach. The company’s plan is to disrupt the $35 billion car warranty and service contract industry and provide an innovative solution to tackle wear-and-tear failures.
For CarmaCare, users can choose from either $100 or $250 deduction for covered repairs. These repairs include powertrain, electronic and mechanical components as well as road assistance for unexpected breakdowns. The Virtual Garage feature also allows users to get unbiased opinions and assistance for their car repairs. Ultimately, CarmaCare wants users to keep their cars for a longer amount of time, in order to successfully combat rising interest rates on new and used cars caused by inflation.
The company is still in its infancy and has future plans to invest in customer acquisition and hiring more underwriters. In addition, they are soon to begin financing customers and looking at other possible products. Led by Inspired Capital with Twelve Below, Revelry and 81 Collection also participating, CarmaCare is showing signs of plenty of growth ahead.
