New York, NY – HookLogic recently announced a $9.5 million round of financing from Bain Capital Ventures. It is the first institutional investment in HookLogic after six years of profitable growth. The funding will be used to further develop its unique Software-as-a-Service (Saas) platform that has underpinned the company’s record growth in the first half of 2011, including its market-leading automotive business, and aggressively expand its business across the automotive sectors in North America and Europe.
HookLogic’s targeted incentive programs and partnership with lead-scoring solution provider RL Polk have helped clients achieve an average 20 percent increase in close rates by converting more consumer leads into showroom visitors. Clients include MileOne Automotive, Germain Motor Company, Suburban Collection, Herb Chambers Auto Group, and AutoTrader. Its timing concurs with a hugely successful first half of 2011 in which it signed a channel partnership agreement with AutoUSA Internet Sales Solutions, the premier independent Internet lead provider, to power its ShowPro suite of products.
"We have made very selective and profitable investments in the automotive software space,” says Deepak Sindwani, Principal at Bain Capital Ventures. “HookLogic has a proven business model, loyal clients, and provides an amazing return on investment to automotive marketers. We’re thrilled to be a partner in scaling the business.”
Bain Capital Ventures was the primary investor in vAuto, an inventory optimization software company that was recently acquired by AutoTrader.
"We see this as a validation of our business model from one of the smartest, most demanding investors in the world," says Jonathan Opdyke, CEO of HookLogic. "Today, automotive dealers and marketers generate an amazing number of leads, but there is a clear gap when it comes to converting those leads into showroom visits. We’re successfully bridging that gap and helping our clients win more business and grow market share.”
Opdyke pointed out the financing announcement builds on the company’s recent hire of David Metter as president of HookLogic’s automotive division. Metter is one of the foremost experts in automotive digital marketing and has been a driving force in the adoption of many new technologies, including HookLogic.