BacklotCars, a Kansas City, Missouri-based online used car marketplace for automotive dealers, announced it has raised $8 million in Series A funding along with $10 million in an expanded credit facility. This round of funding was led by Origin Ventures.
Revolution’s Rise of the Rest Seed Fund, Pritzker Group Venture Capital, KCRise Fund, Royal Street Ventures, Chaifetz Group, and several others also participated in this round. In conjunction with this round of funding Origin Ventures co-founder and partner Steve Miller is joining the BacklotCars board of directors.
“We are very excited to welcome new capital partners to BacklotCars,” said BacklotCars founder and CEO Justin Davis in a statement. “This investment comes at a great time. We are growing rapidly in our existing markets and expanding our national footprint. We expect to continue to add new features – to accompany our transportation network and financing programs – to help dealerships operate more efficiently.”
There are thousands of dealers on the BacklotCars platform. And BacklotCars connects wholesale buyers and sellers across the U.S. And BacklotCars has become one of the easiest ways for used car dealers to source, transport, finance, and sell used car inventory. BacklotCars offers a pre-sale inspection and buyer guarantee.
In the past year, BacklotCars expanded into several new states and added hundreds of new dealers every month as its transaction volume surpassed $100 million on an annualized basis.
“We are thrilled to invest in a dynamic and disruptive marketplace like BacklotCars,” added Miller. “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.”