Zag.com Inc., which operates an auto shopping, research and pricing technology platform, has received $37.4 million in strategic and venture funding.
The funding round was led by USAA, which provides financial services to members of the military and their families. USAA offers the Zag platform to 6.8 million members nationwide. Also participating were Zag`s existing investors, Capricorn Investment Group LLC, GRP Partners and Anthem Venture Partners. Zag says it will use the money for expansion.
Zag operates an online car-buying platform that connects buyers with more than 2,000 dealers nationwide. Zag says it uses group buying power to get lower prices for consumers, and employs technology to give buyers guaranteed, dealer-provided upfront prices while those buyers are still online. Zag provides its platform on a private-label basis to affinity buying groups like USAA.
Zag also reported its December 2008 automotive retail sales were up by 15% over November and by 130% over December 2007.