Pure-play software house Pinewood Technologies is eyeing expansion in the US dealership market after taking a £3.43 million stake in artificial intelligence (AI) specialist Seez.
Dubai-based Seez has developed a product portfolio which includes an AI chatbot designed to enhance customer interaction, along with a variety of other advanced AI SaaS modules tailored for the automotive industry.
Beyond AI solutions, Seez also offers a suite of e-commerce and omnichannel products that are used by automotive dealer groups in 16 markets.
Its portfolio includes a digital buying tool, back-end AI and machine learning technology, a CRM and inventory management platform, a Chat GPT interface and AI powered digital marketing platform.
This strategic investment is poised to strengthen Pinewood’s product offerings, particularly as the company prepares for its ambitious expansion into the US market, in partnership with Lithia Motors.
As part of this collaboration, Pinewood will secure exclusive distribution rights to Seez’s products in the US, ensuring that Pinewood’s customers have access to the latest and most advanced technical solutions.
Bill Berman, Pinewood chief executive officer said: “This is a unique opportunity for us to further enhance our industry-leading SaaS offering in the automotive retail market.
“Seez is an outstanding business that delivers sophisticated, AI-powered products to the automotive sector. This investment presents compelling commercial and operational benefits for Pinewood. We are eager to collaborate with Seez and are excited about the future opportunities that their comprehensive AI product suite will bring.”
Pinewood estimates that the UK’s franchised dealership systems market – dominated by Keyloop and Pinewood – is worth more than £100 million. Lithia has said it would roll out Pinewood’s software across its existing 50 UK dealerships, adding 2,500 users to the existing 30,000 user customer base.
Pinewood’s strategic partnership with US dealership giant Lithia is focussing on integrations with OEM systems and third-party apps that are widely used in the US to support Pinewood’s expansion in North America, with a full rollout in Lithia’s US dealerships following pilots scheduled for early 2025.
The North America dealer software market is estimated to be worth more than £2.6 billion per year and success there would help double Pinewood’s 2022 underlying profits to a targeted £27 million in 2027.
The investment will be financed using Pinewood’s existing cash.
Seez has previously raised more than £11.2m in investment and was named as one of the top 50 start-ups to emerge from within the GCC region.
