FM Capital likes what’s developing with Impel, so last week the venture capital firm returned to increase its position in the company, which offers artificial-intelligence powered solutions for automotive retailing.

According to a news release, FM Capital completed a follow-on, secondary share purchase six months after first investing in Impel.

This follow-on investment makes Impel one of a few automotive technology companies to ever receive two rounds of investment within a single year. It’s a move that FM Capital said reflects its growing conviction in Impel’s continued product execution and customer adoption.

“When we first invested in Impel, we believed they were one of the companies best positioned to lead the next phase of automotive AI,” said Chase Fraser, managing partner at FM Capital, which is a venture fund managed by automotive entrepreneurs and dealers. “Over the past six months, that conviction has only grown.”

FM Capital’s base incorporates some the largest privately owned dealer groups and automotive technology vendors in the country, including 56 of the top dealer groups in the United States, representing more than 1,100 dealership locations nationwide.

“We’ve seen strong validation from the market and from many of our dealer LPs, who evaluate these tools every day in the field,” Fraser continued. “Dealers like the product, the go-to-market team is executing exceptionally well, and Impel has the combination we look for in AI-native companies: deep vertical data, a large customer base, and a clear understanding of the workflows that matter most to dealers.

“This follow-on investment reflects our continued confidence in the team and the opportunity ahead,” Fraser went on to say.

In the six months since FM Capital joined Impel’s investor base, the company has achieved:

—New enterprise partnerships: Impel was named strategic AI partner to TrueCar, bringing its automotive AI operating system to 11,500 dealers and 250 membership organizations nationwide. It’s one of the largest platform partnerships in the company’s history.

—Expanded OEM footprint: Impel extended its reach in one of the industry’s largest dealership networks, adding new product certifications with OEMs including General Motors, FordDirect, Stellantis, Hyundai, Kia and Mitsubishi.

—Platform expansion: Impel launched its next-generation sales AI solution, combining AI video generation technology with fully configurable AI agents.

—Market share validation: Based on Automotive News’ 2026 Top 150 Dealership Groups ranking, more than 75% of the largest dealer groups in the country now run on Impel AI.

—Recognized growth: Impel was ranked among the Top 50 fastest growing AI companies in America on the Inc. 5000 list.

—Industry education and thought leadership: Enrollments in the automotive AI certification program, created by Impel and RockED, have now surpassed 11,000 industry professionals.

Impel added that it now serves more than 8,000 dealers and OEMs across 51 countries, and its platform has delivered more than 42 billion shopper interactions, influencing more than $12 billion in sales and service revenue to date.

Impel claimed that dealers using its AI tools see an average 27% increase in sales conversions, 27% increase in service repair orders generated, and 24% lift in customer repurchase rates.

Impel co-founder and CEO Devin Daly is bullish about what the company can do next with more resources from FM Capital.

“This investment isn’t just about capital, but rather the invaluable relationship with FM Capital we plan to keep building on,” Daly said. “FM Capital’s network gives us a direct line into some of the largest dealer groups in the country, and that kind of access has helped shape the direction of our product roadmap. Over the past six months, this access has enabled us to expand our enterprise and OEM partnerships and deliver the next generation of our AI platform built around direct dealer feedback.

“Having FM Capital come back and add to their investment tells us we’re building the things that matter most,” Daly went on to say. “When a partner doubles down with that level of conviction, especially one whose investors are our own customers, it validates not just where we are today but the pace at which we intend to keep moving. We’re grateful for their continued confidence, and we are just getting started.”