APFusion, a B2B marketplace and SaaS company for the auto salvage industry, announced it has raised $6.5 million in Series Seed financing, bringing its total funding to $7 million. The round was co-led by Left Lane Capital and Bedrock Capital, with continued support from M25.
Initially, a marketplace connecting new aftermarket parts providers with salvage yards, APFusion is now expanding its platform to include software tools. And this combination of an inventory marketplace and high-impact software aims to help salvage yards increase sales and efficiency.
Momentum: The funding follows a year of significant growth for APFusion, which saw its year-to-date Gross Merchandise Value (GMV) more than triple.
How the funding will be used: The company plans to utilize the new capital to expand its engineering division, enhance product offerings, and develop additional software tools to improve customer experience and operational efficiency for salvage yards.
KEY QUOTES:
“We couldn’t be happier to be supported by these world-class investors. They could see that APFusion is unique because it’s one of those few companies that get the opportunity to truly make a meaningful positive impact within an industry. A chance to move a technologically underserved industry forward.”
“Much of the reason for APFusion’s rapid growth over the last year is due to our continued effort to work with our customer base to identify the features and product enhancements that will best support not just our customers but the auto salvage industry as a whole. Our highly engaged customers have helped guide our path as a company, and we are extremely grateful to have additional capital behind us to continue to build and expand our offerings.”
APFusion CEO & Founder Alex Smith
“When we think about industries that have generally been untouched by software, the auto salvage yard world ranks as one of the most antiquated. APFusion has already experienced impressive traction, and the industry’s stakeholders are realizing the power that software and digital marketplace experiences can have. We are excited to partner with Alex and the APFusion team to bring world-class tools to an industry that has generally flown under the radar. Alex’s background and industry expertise make him arguably the single best person to take on this challenge.”
Derek Urben, an Investor at Left Lane Capital, who is joining the APFusion Board of Directors
“When we first met Alex and heard the story around APFusion, we weren’t surprised that it was this Champaign-based startup that had discovered this unique problem in an overlooked industry – we’re used to seeing that. What shocked us was the massive size of the industry and the insane speed of growth and adoption among eager customers. Alex and the team had clearly set themselves apart and hit the product-market-fit sweet spot.”
M25 Managing Partner, Victor Gutwein
“APFusion has been a game-changer for our sales team, having an Aftermarket and Surplus catalog integrated into our YMS has made a huge difference in our ability to say yes to the customer. The automated interface that generates the ticket and PO# in our system with a few simple clicks, combined with the unique advantage of on-screen pricing and hourly updates populating into our system has allowed us to change the way we sell parts from outside inventory. The time we have saved not having to call multiple vendors and check alternate supplier websites has been a great simplifier in generating sales. The drop ship directly to customers takes the ‘delivery’ cost off of our local trucks and has been a win for us with fuel prices continuing to surge.”
Gabe Givens, Inventory Manager at Counselman Automotive Recycling
