BacklotCars, an online wholesale car marketplace for dealers, has secured Series A funding of $8 million, plus $10 million more in an expanded credit facility, the company said in a news release.
Origin Ventures led the financing round, and its co-founder and partner Steve Miller will join the BacklotCars board of directors.
Also participating in the round were Revolution’s Rise of the Rest Seed Fund, Pritzker Group Venture Capital, KCRise Fund, Royal Street Ventures and Chaifetz Group, among others.
The BacklotCars platform connects wholesale buyers and sellers. In addition to its core marketplace function, the company has added transportation and financing services in recent years. It allows dealers to source, sell, transport and finance used cars.
“We are very excited to welcome new capital partners to BacklotCars,” said Justin Davis, founder and chief executive of BacklotCars, in a news release.
“This investment comes at a great time. We are growing rapidly in our existing markets and expanding our national footprint,” Davis said. “We expect to continue to add new features — to accompany our transportation network and financing programs — to help dealerships operate more efficiently.”
Since 2016 — which is when the company shifted to a transactional model — BacklotCars has sold more than 30,000 vehicles with a 52-percent sell-through rate, the company said.
Headquartered in Kansas City, Mo., the marketplace is available in more than 21 states and has generated venture funding of $12.8 million.
BacklotCars says it generates more than $100 million in transaction volume on an annualized basis.
“E-commerce is pervasive, and is also the most efficient way to buy and sell wholesale auto inventory,” said Davis. “This generation of buyers and sellers is using BacklotCars to save time and money, allowing dealerships to spend more time with customers. And that is a very good thing.”
Added Miller, the Origin founder joining the company’s board: “We are thrilled to invest in a dynamic and disruptive marketplace like BacklotCars. The wholesale car market has long been ripe for disruption, and we believe Justin and the BacklotCars team will continue to empower dealers to move their inventory more effectively.”
Updated to clarify venture funding and timing of sales volume figures.