Upstart Holdings, Inc. (NASDAQ: UPST) reported entry into a definitive agreement to acquire Prodigy Software, Inc. Over USD 1 trillion of cars are sold within the US every year and most are financed. Purchasing a car is amongst the worst consumer experiences with less than 1% of buyers satisfied with the current process.
“While Amazon and Shopify have modernized the online shopping experience, the auto industry has been left behind. Upstart is on a path to reduce the cost of auto financing, and we can accelerate this opportunity with a modern multi-channel purchase experience,” said Dave Girouard, co-founder and CEO of Upstart. “Auto retail is among the largest buy-now-pay-later opportunities, and together with Prodigy, we aim to help dealers create a seamless and inclusive experience worthy of 2021.”
Michia Rohrssen, CEO of Prodigy, said, “Our mission has always been to build the world’s best car buying experience, and for the majority of buyers today, that experience includes financing their vehicle. Upstart’s demonstrably better lending technology will enable us to deliver more affordable and transparent auto loans to millions of consumers through our dealer network.”
Upstart will focus its efforts to offer AI enabled auto loans through tens of thousands of auto-dealers in the nation where majority of auto loans are originated. The transaction is expected to close within the second quarter of 2021 subject to closing conditions.