Tricolor raises $30 million
Tricolor , the Community Development Financial Institution which sells and finances certified used motor vehicles, announced a $30 million preferred equity investment from a global institutional investor.
Founded in 2007, the company, through its premium brands, Tricolor Auto Group in Texas and Ganas Auto Group in California, utilizes “advanced data analytics and technology” to advance financial inclusion to a highly underserved market and offer affordable, credit-building auto loans to individuals with no or limited credit history. To date, Tricolor has disbursed nearly $1 billion in affordable auto loans, and with the new infusion of funds, it will scale its platform and retail network to expand availability to auto financing options for Hispanic customers in new markets.
Last year, Tricolor launched a new affiliate called Tricolor Insurance that leverages its “proprietary underwriting algorithms and successful scoring strategies” to provide “affordable, low-monthly premium” insurance policies to auto owners. The company will continue to expand this program alongside its growing dealer and financing network.
“The deck is stacked against financially underserved customers in America when it comes to purchasing and financing a used vehicle. We have proven that the right infrastructure and culture make it possible to build a profitable business providing these customers with affordable access to high quality vehicles. This investment will allow us to deliberately expand our business in pursuit of a mission to impact and improve even more lives.” – Tricolor CEO Daniel Chu.