Automotive affinity sales site Zag raises $32.4 million
The automotive industry is in chaos. But one classified listing service seems to have the golden touch.
Santa Monica, Calif.-based Zag, an auto-buying service that lets people buy cars at a discount through affinity organizations like AAA, has raised $32.4 million, led by USAA, a financial organization for U.S. military personnel. USAA joins existing investors Anthem Venture Partners, GRP Partners and the Skoll Fund co-invested in the funding round.
The investment doesn’t come from too far afield. USAA has been one of Zag’s affinity partner since 2007, and 22,000 USAA members have purchased cars through the Zag service.
Zag was founded by CarsDirect’s Scott Painter. His latest venture is True Car, a site that aims to use current sales data to determine what a new car should cost. It launched late last year.
