#USA #H.I.G. Capital #Long Beach #myKaarma #Warburg Pincus

H.I.G. Capital Sells Minority Stake in myKaarma

In a strategic move to bolster the automotive technology sector, H.I.G. Growth Partners has successfully sold a minority stake in its portfolio company, myKaarma, to the reputable investment firm Warburg Pincus. This significant transaction, announced on January 14, 2026, marks a pivotal moment for both companies, underscoring H.I.G. Capital's robust position in the global investment landscape.

Strategic Background

H.I.G. Growth Partners, a key player in growth capital investments, manages an impressive portfolio with $74 billion in total capital. The firm’s commitment to supporting innovative solutions in various sectors is highlighted by its investment in myKaarma, a leading provider of comprehensive service lane solutions tailored for automotive dealerships. Headquartered in Long Beach, California, myKaarma is at the forefront of transforming the customer service experience in the automotive sector with its cloud-native Workflow AI platform.

A Commitment to Innovation

The myKaarma platform enables auto dealerships to streamline operations, improve customer experiences, and optimize payments, which are essential for driving revenue growth. The company's success can be attributed to continuous product innovation, operational excellence, and a rapidly expanding customer base. Following H.I.G. Growth’s initial investment, myKaarma has notably tripled in size since 2022, showcasing its ability to adapt and thrive in a competitive market.

Warburg Pincus Joins Forces

With Warburg Pincus joining as a significant investor, myKaarma is poised for an exciting next chapter. Warburg Pincus brings deep expertise in automotive software and cutting-edge technologies, particularly in generative and agentic AI, which aligns with myKaarma's vision for future growth. Ujj Nath, CEO of myKaarma, expressed enthusiasm about the new partnership, stating, "We are thrilled to have Warburg Pincus join us as we look to dominate the service lane technology market. Their experience will be invaluable as we pursue new AI-driven opportunities."

Leadership and Expertise

Evan Karp, Managing Director at H.I.G., praised the growth and transformation myKaarma has achieved under their guidance. He emphasized that Warburg Pincus would be an outstanding partner to help foster continued innovation, given their established record of scaling technology companies effectively. The combined strengths of H.I.G. and Warburg Pincus are expected to propel myKaarma towards even greater success.

Michael Ding, Managing Director at Warburg Pincus, echoed these sentiments, highlighting myKaarma's leadership in service marketing and dealership payments. With a focus on enhancing profitability for automotive dealerships, the partnership aims to leverage innovative AI solutions and robust financial frameworks to deliver exceptional value to clients.

Advisory and Financial Framework

In facilitating this intricate deal, myKaarma was advised by Houlihan Lokey and TD Securities, while Warburg Pincus collaborated with RBC Capital Markets as their financial advisor. This collaboration underscores a comprehensive approach to navigating the complexities of the investment landscape.

Conclusion

As myKaarma continues to innovate and expand, the involvement of prominent investors like H.I.G. Growth Partners and Warburg Pincus signals a bright future for the company. As the automotive industry evolves, myKaarma stands ready to lead with cutting-edge solutions that redefine service lane operations, enhance customer engagement, and drive revenue growth across the sector. The backing of these strategic partners ensures that myKaarma will not only meet but exceed the aspirations of automotive dealerships looking for advanced technology solutions. For more information, visit mykaarma.com.