CARMEL, Ind. -

It’s been an active opening month of 2021 for Kinetic Advantage, a newly formed floorplan financing company with an eye on gaining market share among independent dealerships.

After landing an undisclosed amount of funding through Altamont Capital Partners, Kinetic Advantage this week announced the launch of its new cloud-based auditing program as well as a major facility and workforce expansion plan aided by support from the state of Indiana and the city of Carmel.

Beginning with the technology news, Kinetic Advantage said its new auditing platform is the first of its kind. The company explained its cloud-based Real-Time Intelligent (RTI) Auditing System is designed to address a long-time pain point for dealers undergoing the traditional audit process with their floorplan provider. 

Powered by 12th Tech, Kinetic Advantage highlighted that its system is geared to revolutionize the auditing industry, converting it from a labor-intensive, expensive and mostly manual process into a sophisticated, cloud-based and robust electronic verification auditing system that can provide reliable, accurate and cost-effective analysis and reporting. 

Kinetic Advantage explained that its auditing methods can allow its dealer clients to enjoy real-time interaction with a collateral audit specialist via action alerts, a chat feature and other reporting functionality. The wizard-based mobile audit capabilities are optimized across phone, tablet, laptop and desktop devices for staff, auditing teammates and dealer clients.

The company also noted that the system provides an innovative widget than can automate and streamline the reconciliation of collateral that is not manually verified, such as sold units, test drives or other offsite units.

“By utilizing our custom configuration of 12th Tech’s Real-Time Intelligent Auditing System, we are the first company to provide this leading technology to independent dealers,” Kinetic Advantage director of audits Jeremiah Johnson said in a news release. “We are focused on continuously improving the dealer experience, and this new system enhances the quality and accuracy of their audit data.

“With its intuitive design and great user experience, the system has also enabled dealers to more effectively manage risk across the entire audit process,” Johnson continued. “At Kinetic, we are offering our clients the ability to focus on their operational needs, while we streamline the audit process through our industry-leading technology.”

Mark Abrams, chief executive officer and founder of 12th Tech added this perspective.

“Legacy systems available to the industry for auditing are no longer good enough,” Abrams said. “We saw the immediate need for a robust, flexible, mobile and easy-to-use auditing system that enables dealers and finance companies to not only mitigate their risks with better insight into their inventories, but also drive real-time, secure reporting and analysis.”

Workforce and facility upgrades

According to a news release distributed by the city of Carmel, Kinetic Advantage also is quickly developing its human capital and brick-and-mortar resources, too.

The company, which currently operates out of 24,500 square feet of office space at 10333 N. Meridian in Carmel, plans to invest more than $4 million to expand its new headquarters, leasing and equipping an additional 34,200 square feet in the same building.

The additional upgraded space will allow Kinetic to grow its client base and continue to provide technology-driven solutions to independent dealers across the U.S.

Kinetic Advantage plans to have the expanded space fully operational by April.

To support its growth further, Kinetic Advantage has already added 65 new Indiana-based positions since July. The company plans to continue growing its team by creating up to an additional 225 new jobs over the next few years.

Kinetic Advantage has secured more than $225 million of initial debt and equity funding to support its expansion, according to the city’s news release.

“I’ve been involved in three startups in Indiana and have found that Indiana is a great place to build a business given the educated workforce, excellent work ethic and pro-business climate in Indiana,” Kinetic Advantage CEO Marty McFarland said in that news release. “I am thrilled to work with my Indiana teammates in building an employee and customer-centric business.”

The Indiana Economic Development Corporation offered Kinetic Advantage up to $5 million in conditional tax credits based on the company’s plans to create up to 273 jobs by the end of 2024. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

The city of Carmel supports the project.

“We are thrilled that Kinetic Advantage has chosen Carmel for its corporate headquarters along the Meridian Corridor, which continues to attract high-paying jobs,” Carmel mayor Jim Brainard said. “We work hard to create and sustain a high quality of life so that companies like Kinetic Advantage will have a large pool of highly educated residents to fill the new jobs they create. We look forward to watching them grow and succeed in Carmel.”

The Hoosier State’s top elected official also cheered Kinetic Advantage’s plans.

“With Indiana’s best in the Midwest ranking for entrepreneur friendliness, we’re committed to providing the business-friendly environment and skilled workforce that companies like Kinetic need to grow operations,” Gov. Eric Holcomb said. “Kinetic’s rapid growth, even during the pandemic, is impressive, and we’re grateful for the quality career opportunities that the company is creating for Hoosiers.”

Kinetic Advantage already has launched in 26 markets to date and will continue expanding nationally by developing relationships across auction platforms. The company will continue ramping up hiring this year, and open positions will be posted online as they become available.