myKaarma, an artificial intelligence-powered service lane platform for auto dealerships, announced a strategic investment from private equity firm Warburg Pincus to accelerate the company’s growth as it expands its portfolio of AI-driven fixed ops and payments systems.

As part of the transaction, Warburg Pincus purchased a minority stake in myKaarma from previous investor H.I.G. Growth Partners and has joined myKaarma’s board of directors.

“With both H.I.G. and Warburg’s operational support and experience, we are further positioned to help dealerships maximize efficiency, revenue and customer satisfaction across their service lanes,” myKaarma CEO Ujj Nath said.

Nath noted the company has more than tripled in size since H.I.G.’s initial investment in 2022, the result, he said, of product innovation, category expansion, operational execution and expansion of its customer base.

“We are proud of the transformation and growth myKaarma has achieved,” H.I.G. Capital managing director Evan Karp said. “We believe Warburg Pincus is the right long-term partner to support the company’s continued innovation and expansion, given their deep domain expertise and strong history of scaling software businesses.”

Warburg Pincus principal Allison Ross said her company is “excited about myKaarma’s long-term growth trajectory, and our investment will help scale the company’s offerings to enable auto dealerships across the country to optimize their service center profitability and unlock additional value.”

myKaarma’s cloud-native Workflow AI platform is designed to help dealers streamline service leads, operations and payments, enhance customer experience and improve service advisor and technician efficiency to drive revenue improvement.

“myKaarma is the market leader in service marketing, service lane technology and dealership payments, distinguished by its exceptional customer advocacy,” Warburg Pincus managing director Michael Ding said. “We look forward to applying our expertise in automotive technology, integrated payments and generative AI to support the company’s continued growth.”

Equity for the transaction is provided by Warburg Pincus Capital Solutions Founders Fund, which closed in September 2024 with more than $4 billion in commitments.