Refraction

What Refraction does

Refraction is a Buffalo, New York-based software company that sells an AI-powered digital retail platform to independent auto dealerships in the United States. The company targets non-franchise dealers who lack the capital to build the custom digital retail infrastructure used by large franchise groups, positioning its products as enterprise-grade capabilities at flat-rate subscription prices. Founded in 2023 by Jason Schwinger (CEO) and Jason Bartz (COO/Advisor, previously at ACV Auctions), Refraction operates with a team of 1–10 employees from its headquarters at 155 Chandler Street, Buffalo, NY.

The platform consists of three products delivered as a cloud-based SaaS suite. The core product, Refraction, is a white-labeled digital storefront with online checkout, credit applications, and trade-in tools, synchronized in real time with Dealertrack and Frazer DMS systems. Prizm AI is the platform's proprietary AI shopping assistant, performing natural language conversational engagement, vehicle comparison, knowledge retrieval from reviews and video content, and automated initiation of credit applications and trade-in workflows. GhostLot adds QR-coded vehicle pages, a built-in CRM, and F&I pipeline management to convert after-hours lot foot traffic into qualified leads. All three products share a unified dashboard and real-time DMS sync.

Refraction generates revenue through monthly SaaS subscriptions billed on 12-month contracts, priced from $600/month (Prizm AI standalone) to $1,500/month (Refraction + GhostLot bundle), with additional per-rooftop fees for dealers operating multiple locations. The go-to-market is sales-assisted, combining inbound demo requests with direct outreach to independent dealership owners. Distribution is anchored by partnerships with Dealertrack and Frazer, complemented by a Western New York startup ecosystem network including Launch NY, START-UP NY, the University at Buffalo, GrowthX, and Helm. The company has raised approximately $350,000 across a February 2024 UBCultivator investment and a November 2024 Launch NY investment, and has not disclosed revenue, ARR, or customer count.

Name

Refraction

Legal name

Refraction Inc.

Website

https://shoprefraction.com

Company type

Private

Founded year

2023

Operating status

Operating

Headcount range

1–10 employees

Short description

Refraction is a Buffalo, NY-based SaaS company that provides an AI-powered digital retail platform — including a white-label storefront, the Prizm AI shopping assistant, and GhostLot QR-coded lot management — exclusively for independent auto dealerships in the United States.

Ownership category

akta.pro rank

Product category

Automotive Retail Software

NAICS

Electronics and Appliance Retailers (44921)

SIC

Wholesale-Hardware (5072)

akta.pro primary industry

Customer Service/Support CRM & Contact Center Platforms (BPAFAFAK)

akta.pro secondary industry

Personalization, Testing & Conversion Rate Optimization (CRO) (BPAFAFAG)

Keywords

• Automotive digital retail
• Dealer digital storefront
• DMS integration software
• AI shopping assistant
• Automotive CRM platform

Headquarters

HQ city

Buffalo

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Subscription Revenue - Platform Licensing: Monthly subscription fees for access to the Refraction digital retail platform. Pricing tiers based on product selection (Refraction, Prizm AI, GhostLot, or bundles). Additional fees for additional rooftops (dealership locations). All plans include unlimited inventory listings, real-time DMS integration, Prizm AI, and dedicated support. 12-month contract terms.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels4 records

Core offering

Refraction provides an AI-powered digital retail platform for independent auto dealerships, combining a white-label digital storefront (Refraction), an AI shopping assistant (Prizm AI), and a QR-coded lot management system with built-in CRM and F&I pipeline (GhostLot). The platform syncs in real time with Dealertrack and Frazer DMS systems to deliver online checkout, credit applications, trade-in tools, and after-hours lead capture as an integrated SaaS solution.

Product overview

Refraction is an AI-powered digital retail platform for independent auto dealers, consisting of three integrated products. The core product is the Refraction digital storefront, a white-labeled platform that provides a complete online car buying experience with built-in Prizm AI assistant, online checkout, credit applications, and trade-in tools — all synced to the dealership's DMS. Prizm AI is an add-on AI shopping assistant that engages customers with vehicle information and converts interest into credit applications and trade-in submissions. GhostLot is an add-on tool featuring QR-coded vehicle pages and CRM capabilities that generates leads from after-hours foot traffic. All three products share a unified dashboard, DMS integration, and pricing is available individually or as bundles.

Differentiator

Problem solved

Functional benefit

Brands

• Prizm AI: AI-powered shopping assistant that converts browsers into buyers, native on Refraction sites and available for most dealer websites. It starts credit applications and trade-in workflows, pulls vehicle reviews and YouTube comparisons, helps shoppers compare vehicles on the site, and keeps customers engaged.
• GhostLot

Products and services

• Refraction Digital Storefront A white-labeled, fully customizable digital storefront for independent auto dealerships, built around the dealership's own domain and branding. It includes built-in Prizm AI, online checkout with deposit placement, online credit applications, trade-in submissions, and real-time two-way inventory synchronization with the dealer's DMS (Dealertrack or Frazer). Setup from DMS connection to selling is described as taking about five minutes, and customers can browse, search, compare up to four vehicles, check out, and schedule test drives online.
• Prizm AI An AI-powered shopping assistant that engages dealership website visitors with vehicle reviews, YouTube comparisons, side-by-side vehicle comparisons, and financing guidance, then converts that interest into credit applications and trade-in submissions 24/7. It is native to Refraction storefronts and also available as a standalone subscription for most dealer websites.
• GhostLot A lot management system that generates branded QR codes for vehicle windshields, mailers, and ads to convert after-hours lot foot traffic into qualified leads. It includes a built-in CRM with lead tracking, up-rotation, and scheduling, plus online credit applications and an F&I pipeline on a unified dashboard covering inventory, leads, and analytics.

Quantifiable outcome

• Go live in days, not months
• +1 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability6 records

Feature6 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Dealertrack DMScoreTechnology or IntegrationDealertrack is a leading DMS (Dealership Management System) platform. Refraction integrates with Dealertrack for real-time, two-way inventory and sales data synchronization. This integration allows dealers using Dealertrack to seamlessly connect their inventory to Refraction's digital retail platform.
• FrazercoreTechnology or IntegrationFrazer is a DMS platform popular with independent dealerships. Refraction integrates with Frazer for real-time, two-way sync of inventory, pricing, and status updates, ensuring dealers always have accurate listings without manual entry.
• START-UP NYminorStrategic or Co-development PartnerSTART-UP NY is New York State's economic development program that offers tax incentives to businesses relocating to or expanding in designated areas near SUNY campuses. Refraction is part of this ecosystem, likely receiving tax benefits and support in exchange for creating jobs in New York.
• Launch NYminorStrategic or Co-development PartnerLaunch NY is a nonprofit venture development organization that provides mentorship, coaching, and investment to startups in the Western New York region. As a Launch NY portfolio company, Refraction receives startup support and mentorship services.
• University at BuffalominorStrategic or Co-development PartnerThe University at Buffalo is connected to Refraction through UBCultivator, UB's startup incubator. This relationship provides access to university resources, talent, research, and the startup ecosystem centered around the university.
• GrowthXminorStrategic or Co-development PartnerGrowthX is a startup support organization that provides mentorship, resources, and community for early-stage companies. Refraction is part of the GrowthX ecosystem, likely receiving guidance and connections for growth.
• HelmminorStrategic or Co-development PartnerHelm is a startup support organization that provides resources, mentorship, and community for founders. Refraction partners with Helm as part of its startup ecosystem support network.

Scale indicators2 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Roadster: Roadster is a digital retail platform purpose-built for automotive dealers, offering express storefronts, online checkout, credit applications, and trade-in tools with DMS integration — directly comparable to Refraction's core offering and target segment.
• AutoFi: AutoFi provides an online car-buying platform for dealerships featuring credit applications, payment calculators, trade-in valuations, and online checkout — a direct functional competitor to Refraction's digital storefront and credit-app workflow.
• Drive Motors: Drive Motors offers a digital retailing platform for dealerships including online financing, trade-in, and home delivery tools, with a comparable target customer profile of franchise and independent dealers — directly overlapping Refraction's feature set.
• CarNow: CarNow provides real-time digital retailing tools for dealerships — including credit applications, trade-in, online scheduling, and live engagement — directly comparable to Refraction's real-time DMS-synced digital storefront capabilities.

Broad incumbents

• DealerSocket (now NetSol Technologies): DealerSocket is a long-established dealer CRM and management suite with broad capabilities across sales, service, and digital retail; it overlaps with Refraction's CRM and digital storefront functionality but as part of a wider incumbent portfolio targeting franchise and independent dealers alike.
• Cox Automotive / Dealertrack: Cox Automotive owns Dealertrack (one of Refraction's two core DMS integration partners) and operates a broad portfolio of dealer software including VinSolutions, Autotrader, and Kelley Blue Book — a deep-pocketed incumbent that both powers Refraction's stack and competes for the same end-customer wallet share.
• VinSolutions (Cox Automotive): VinSolutions is a major dealer CRM and desking platform with extensive digital retail and lead-management capabilities, widely deployed across franchise and independent dealers — competing with Refraction's CRM, lead-tracking, and F&I pipeline features as part of a larger incumbent suite.
• Elead (Reynolds & Reynolds): Elead is a long-established dealer CRM and sales platform owned by Reynolds & Reynolds, with digital retailing, lead management, and DMS-adjacent features that overlap with Refraction's product offering for independent and franchise dealers.

Emerging players

• ACV Auctions: ACV Auctions is a digital wholesale marketplace for used vehicles; while not a direct digital-retail competitor, it operates in the same automotive-tech ecosystem as Refraction, was a previous employer of Refraction's COO, and shares the independent dealer customer base.

Others

• OfferUp / Turo (used vehicle marketplaces): Used-vehicle consumer marketplaces compete for end-shopper attention upstream of dealer-owned digital retail platforms like Refraction's — adjacent ecosystem participants rather than direct competitors, but shaping the same independent dealer's online visibility strategy.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/RefractionMotorcar

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Refraction