Andy Hinrichs and Nick Stellman are once again back at square one.
A year after they sold Irvine-based automotive fintech Digital Motors to vehicle pricing and information website TrueCar Inc. (Nasdaq: TRUE), the serial entrepreneurs committed to a new venture: Finio Inc.
Their new Irvine-based startup, like Digital Motors, connects customers, retailers and lenders, but, this time, across the powersports, recreational vehicles, motorcycle and marine leisure industries.
“It’s a natural extension of our repertoire, to now migrate into adjacent industries from automotive,” CEO Hinrichs told the Business Journal.
Hinrichs and Stellman sold Digital Motors to TrueCar last May for a total consideration of $21.8 million, including $15.5 million in cash. TrueCar was valued at $200 million as of last week.
Automated Financing
Current methods of financing for RVs, boats, motorcycles and powersports vehicles involve “filling out a lot of paperwork” at dealerships, Hinrichs said.
Finio aims to make that process remote and paperless by transferring it online.
The startup’s platform automates matchmaking between dealers, lenders and customers by analyzing users’ financial information and providing approved offers from various lending facilities.
The online process is instantaneous, whereas paper methods take a few hours to a few days. That reduces time spent evaluating customer leads for lenders and dealers.
Additionally, with Finio, “the customer feels more empowered,” since they can choose from a variety of financing options, Hinrichs said.
“When given the reins, customers tend to buy more accessories and insurance coverage,” which can increase profitability for dealers, he added.
Product Launch
Hinrichs and Stellman expect Finio to be available within the next two to three months.
Finio will not be paid for by customers, but instead by manufacturers or dealers that want to have its credit approval process embedded in their websites.
The startup is currently self-funded and is not looking for investors.
“But that may change as the company scales,” Hinrichs said.
The two founders don’t yet have an exit strategy in mind, since they want to focus on the powersports, RV, motorcycle and marine leisure industries, which are new to them.
“Nick and I have traditionally been auto fintech guys,” Hinrichs said. “So, this is exciting for us to spread our wings and go wider.”
Past Ventures
Hinrichs has a long history in the auto financing industry, particularly Mercedes Benz where he worked as a top executive in Europe, North America and Asia Pacific.
Following Digital Motors’ acquisition by TrueCar, Hinrichs and Stellman served as VPs at the public company for about a year.
Hinrichs worked as senior VP of Digital Motors, while Stellman, previously COO of the auto fintech, served as a VP of business development at TrueCar.
Prior to starting Digital Motors, Hinrichs and Stellman co-founded AutoGravity Corp., which allowed customers to buy cars online.
Hinrichs in 2018 earned a Business Journal Excellence in Entrepreneurship award while with AutoGravity, which at the time had raised about $80 million in funding, making it one of OC’s fastest-growing fintech firms.
