Flai raised a $27 million Series A funding round led by automation-focused firm Base10 Partners. The startup creates AI-powered software for car dealerships.
When Flai raised its seed round last year, it operated with just three people. CEO Ari Polakof and his team pitched car dealerships to use the software for phone calls, emails, and texts.
Series A funding follows a 20x revenue increase
One year later, Flai works with more than 10 of the top 50 dealer groups in the country. The AI answers customer inquiries, runs outbound campaigns, and schedules 50,000 appointments per month across sales and service. Polakof told TechCrunch this growth led to a 20x increase in revenue.
The Series A round included funding from dealers Friedkin Group and Findlay Automotive, Toyota’s venture arm, Y Combinator, and First Round Capital. Polakof attributes the customer growth to dealers who see the vision of an AI customer relationship management software built specifically for their needs.
Flai answers phone calls, follows up with customers, and alerts leadership when a customer is angry or lacks a response. Polakof notes the platform has evolved from a simple phone solution into a full platform.
Dealership software operates in multiple languages
The software offers flexibility across different markets. Earlier this year, the company launched with a luxury dealer in Puerto Rico where customers switch between Spanish and English mid-conversation. Co-founder Juan Alzugaray wrote on LinkedIn that the dealer started with inbound service calls, added sales, and is now rolling out Flai across all eight stores.
According to one participating dealer group, the technology helps dealerships sell more cars, make more money, and answer customers faster. Polakof states that half of Flai's revenue comes from new customers because current clients recommend the product to their peers.
Flai deploys its software within 10 days of signing a contract. Polakof tells his team of approximately 40 employees to respond to customers within 20 minutes at most.
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Polakof believes this speed, customer service, and deep industry knowledge protect Flai from outside tech products. This includes tools like Muse, which Meta pitched as a one-shot solution for small businesses.
Despite the rapid momentum, Polakof has not yet landed his own local dealership as a customer. He expects to secure them by next year.
