Sometimes, a strategic pivot is the best choice for company leaders. Consider Netflix's shift from DVDs to streaming or Corning's transition from manufacturing lightbulbs to touchscreens. Successful startup pivots are numerous and noteworthy.
A less-publicized, yet impactful pivot is that of Numa. The co-founders decided to abandon their original conversational AI product in favor of developing customer service automation tools designed specifically for auto dealerships. While this might seem like a narrow focus, it has proven lucrative, as noted by CEO Tasso Roumeliotis. Numa successfully raised $32 million in a Series B funding round this September.
“We were pioneers in AI and conversational commerce,” Roumeliotis shared in a recent interview. “However, we elected to concentrate our efforts entirely on the automotive sector after recognizing the significant opportunity within that market.”
Numa was co-founded in 2017 by Roumeliotis, along with Andy Ruff, Joel Grossman, and Steven Ginn. Grossman previously worked at Microsoft, where he played a pivotal role in launching major products such as Windows XP and MSN Explorer. Ruff, another Microsoft veteran, spearheaded the team responsible for the first Outlook for Mac client.
Numa marks the co-founders' second venture together; their first was Location Labs, a family security company that AVG acquired for $220 million a decade ago. According to Roumeliotis, the team's shared vision for “thoughtfully applied” AI capable of transforming industries was the driving force behind Numa's formation. “The market is flooded with isolated AI and automation solutions or broadly aimed tools,” he explained. “Numa delivers an end-to-end solution specifically tailored to the needs of car dealerships.”
In the U.S., over 17,000 new-car dealerships comprise a $1.2 trillion industry. Despite this massive market, many dealerships face challenges in managing customer service requests. A survey indicated that one-third of dealerships miss at least 20% of incoming calls. This lack of responsiveness can lead to diminished customer satisfaction, ultimately affecting sales. However, Numa aims to prevent this by addressing these pressing issues.
Numa harnesses AI to automate key tasks, such as following up on missed calls and scheduling service appointments. For instance, if a customer calls a dealership but hangs up, Numa can promptly send a follow-up text or make a reminder call. The platform can also keep customers informed about their service status and gather necessary information ahead of trade-ins.
“Many dealerships still rely on outdated systems that are inefficient and lack integration with modern, AI-driven solutions,” Roumeliotis pointed out. “Today’s consumers demand fast, seamless interactions across all platforms. Dealerships often struggle to meet these expectations in real-time communication, service updates, and personalized customer experiences—areas where AI can make a significant impact.”
While other smaller automation vendors like Brooke.ai and Stella AI are providing solutions to ease customer service pressures in dealerships, tech giants offer a range of generic automation tools. Roumeliotis argues that Numa stands out by deeply understanding how workflows within dealerships influence customer experiences.
“Service leaders and staff at dealerships are often juggling multiple responsibilities—assisting customers in person, checking on vehicle statuses, managing ringing phones, and coordinating with coworkers,” said Roumeliotis. “Numa unifies all these elements in a manner intentionally designed with AI and the user experience in mind, to enhance dealership operations.”
Furthermore, Roumeliotis emphasizes that Numa's distinctive advantage lies in its proprietary in-house models driving the platform's automations. These models are trained using datasets from OEMs and dealership systems, alongside conversation data between dealerships and customers.
When asked whether dealerships and OEMs were informed about their data being used for training Numa’s models, Roumeliotis didn’t comment. He did note, “Numa’s models evolve through a feedback loop that connects dealerships, customers, and the utilization of our platform.”
While this answer may raise concerns among privacy advocates, it hasn't deterred many dealerships; Numa currently serves 600 clients across the U.S. and Canada, including the world’s largest retail auto dealership. Roumeliotis claims Numa is “just about” breaking even in cash flow.
“We don’t require new capital to continue growing our revenue,” he added. “Instead, Numa is reinvesting its earnings to accelerate product enhancement by expanding our team of AI and machine learning engineers and developing advanced AI models tailored to the automotive sector.” Numa currently employs 70 individuals.
The retail auto sector’s willingness to adopt AI technologies for automating back-office tasks further aids Numa’s growth. A survey by automotive software provider CDK Global revealed that 67% of dealerships are using AI to generate sales leads, while 63% deploy it for service. Respondents of the poll expressed optimism about AI technology, with two-thirds anticipating positive returns.
Leading Numa's Series B funding round were Touring Capital and Mitsui, a large shareholder in auto dealer Penske. Costanoa Ventures, Threshold Ventures, and Gradient, Google’s AI-focused venture fund, also participated. This funding boosts Numa’s total raised amount to $48 million, solidifying its position in the evolving automotive customer service landscape.
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