AI voice startup Toma has secured US$17 million in series A funding, led by venture capital firm Andreessen Horowitz (a16z).

The company was founded by Monik Pamecha and Anthony Krivonos in early 2024 and previously participated in Y Combinator’s accelerator program.

Toma’s AI voice agent is currently utilized in over 100 car dealerships across the US.

The AI handles service bookings, parts orders, and customer calls to ease staffing issues.

The onboarding process for Toma’s AI involves training it using a dealership’s customer calls over one to two weeks and transfers complex calls to humans.

Toma plans to expand using the new funding while continuing its subscription model.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Dealerships face systemic communication challenges despite its critical impact on revenue

Toma’s discovery that dealerships only answer 45% of incoming calls reveals a persistent industry-wide problem rather than an isolated issue.

Communication failures significantly impact the bottom line, with research showing dealerships can achieve a 20% increase in customer retention rates when implementing effective communication strategies 1.

The missed calls represent substantial lost revenue opportunities, especially considering that phone calls remain a preferred contact method for 23% of automotive customers despite the digital shift 1.

These communication gaps explain why 87% of consumers report disliking the car buying process, with 61% feeling taken advantage of during dealership interactions 2.

The inefficiency stems partly from unpredictable call volumes that make staffing difficult, as industry insider Yossi Levi noted in the article that “sometimes you’re overwhelmed with demand. Other times there’s not enough demand.”

This structural problem has created a $7 billion opportunity for AI solutions in automotive by 2027, with 68% of dealers already reporting positive impacts from AI implementation 3.

2️⃣ Immersive field research gives startups an edge in vertical AI development

Toma’s founders’ decision to live among dealership staff mirrors a proven pattern of successful vertical AI development where founders deeply embed with users.

Their approach echoes the journey of industry pioneer Dale Pollak, whose early experiences in family dealerships led to the development of vAuto’s inventory management software and eventually a $230 million acquisition 4.

This immersion method provides crucial insights impossible to gather remotely, like understanding the importance of customization for different dealer operations that Toma incorporated into their training process.

The a16z partner’s observation that “a lot of the best founders have just lived and breathed with these customers” confirms this isn’t merely good practice but increasingly recognized as essential for vertical AI success.

The strategy allowed Toma to identify that dealerships needed customized AI solutions to handle varied tasks like diesel engine servicing and specific promotions that vary significantly between dealers.

This hands-on approach creates a competitive moat against generic AI solutions, which may explain why Toma secured significant funding despite being a young startup in a crowded AI landscape.

3️⃣ Car dealerships represent an ideal early market for AI voice adoption

The dealership sector presents unique characteristics that make it particularly receptive to AI voice technology compared to Toma’s initial banking and healthcare targets.

Unlike heavily regulated industries, automotive retail offers fewer compliance barriers while still suffering from significant communication inefficiencies that directly impact revenue.

The traditional dealership model faces increasing pressure from changing consumer preferences, with nearly 50% of car buyers starting their purchasing journey online and many preferring to complete configurations and purchases digitally 5.

Dealerships’ structural challenge of balancing staff availability against unpredictable call volume creates a clear value proposition for AI voice systems that can maintain 24/7 availability.

Industry research shows 70% of consumers would use AI agents for automotive assistance, indicating higher customer acceptance in this sector than in many other industries 6.

The economic pressure on dealerships to improve operations is intensifying as direct-to-consumer sales models gain traction, forcing traditional dealers to adapt their business models or risk obsolescence 7.

Recent Toma developments

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