Shop-Ware experienced a lengthy period of development, dating back to 2015, comparable to the extended wait seen in 2020.

This company, which provides software solutions for local automotive businesses to modernize their workflows, previously faced challenges in securing funding from venture capital firms. Until recently, its primary investor was the prominent automotive aftermarket company, Bosch.

For businesses like Shop-Ware, the significant changes brought about by the COVID-19 pandemic have opened up new avenues for investment, as mainstream investors have focused on startups offering essential services and products during this time. Investors are now recognizing the vision and business model of Shop-Ware founder Carolyn Coquillette, demonstrated by a $15 million funding round in Series A financing led by Insight Partners.

“This represents a new level of confirmation that the industry is undergoing a transformation and is attracting the attention of conventional investors,” Coquillette explained.

Coquillette stated that the new funds will be allocated to accelerate growth across all areas of the company, including its sales and marketing teams.

This influx of capital arrives as Shop-Ware has seen a threefold increase in its customer base, alongside a reduction in customer churn, according to Coquillette. However, she did not reveal specific revenue figures or confirm the company’s profitability.

The concept for Shop-Ware originated when Coquillette launched her own auto shop, Luscious Garage, in San Francisco in 2007. From the beginning, her aim was to provide customers with greater insight into the repair process. This required improved communication between technicians and vehicle owners, and a software platform was identified as the most effective solution. Over time, the need for modernized software evolved from an internal project into a separate, independent company. By 2015, she had a fully developed product and a formally incorporated business.

Shop-Ware assists auto-repair shops in optimizing their operations, both internally and externally. These shops can utilize Shop-Ware to monitor employee work hours, manage inventory ordering and control, and integrate with accounting tools like QuickBooks. The platform also facilitates communication and billing for customers through text messaging or a web-based portal.

Coquillette believes that the complexities of vehicle ownership are often underestimated by the average consumer, and she created her business to enhance transparency in what she views as a cumbersome process.

“Most people don’t fully grasp the effort involved in repairing a vehicle,” Coquillette said. “Cars are intentionally designed to conceal their complexity, encouraging buyers to make a purchase.” She describes this as essentially buying a “magic carpet.”

The founder finds that presenting this concept is generally straightforward.

“Almost everyone who owns a car has had a negative experience at a repair shop,” she said. “It’s readily apparent that this experience could be improved.”

The primary challenge for the startup has been persuading businesses to adopt new technology to modify processes that, while not ideal, are currently functional. The COVID-19 pandemic has prompted many auto shops – some of which had traditionally relied on manual, paper-based systems – to embrace digital platforms for communication and operations.

The market for digitizing auto-repair processes has expanded significantly since Shop-Ware’s initial launch five years ago.

Several concierge startups, such as CarDash and Wrench, have emerged in recent years, offering customers a more convenient way to schedule maintenance. However, Coquillette believes this approach is misguided, preferring to consolidate repair options.

“I strongly believe in empowering independent service providers,” she said. “It’s important to allow these unique businesses to maintain their individuality.”

Shopmonkey, which secured a $25 million Series B funding round led by Bessemer in August, represents a more direct competitor to Shop-Ware. Coquillette welcomes this competition, as it has drawn increased investment attention to the industry.

“There’s been a growing awareness regarding vehicle autonomy and our relationship with our cars,” she said.

The next step for Shop-Ware is to capitalize on this increased awareness and translate it into financial success.