Santa Monica, California based Zag, an auto-buying service that lets people buy cars at a discount through affinity organizations like AAA, has raised a monster round of financing – $32.4 million. The round was led by USAA, a financial organization for U.S. military personnel with 6.4 million members. Existing investors Anthem Venture Partners, GRP Partners and the Skoll Fund co-invested in the funding round.
USAA has been an affinity partner of Zag’s since 2007 – 22,000 USAA members have purchased cars through the Zag service, the company says, saving them $115 million v. MSRP.
Zag was founded by Scott Painter, a long time auto-industry guy. Painter also founded True Car, which launched at TechCrunch50 in 2008.
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