Tricolor raises $90 million

Texas-based Tricolor , the company that leverages its D2C, AI-powered platform to provide the underserved Hispanic market with used motor vehicles and financing, received a $90 million convertible preferred equity investment from funds managed by BlackRock, which converts to a minority stake. To date, the company raised $120 million.

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. The company intends to use the capital to expand its business and its financing options into new markets and geographies, scale its recently launched software-as-a-service (SaaS) business unit, Tricolor Financial.

To date, the US Department of the Treasury certified Community Development Financial Institution (CDFI) has disbursed over $1.5 billion in affordable auto loans.

Tricolor and its affiliate Ganas Auto Group operate 50 retail dealerships across 18 markets in Texas, California, and Nevada with a shared services center in Guadalajara, Mexico.