BacklotCars raises $25 million to accelerate its rapid growth nationwide in disrupting the $100 billion auto wholesale market
Series B led by Stripes to bolster industry-leading marketplace for buyers and sellers of wholesale cars
KANSAS CITY, Mo., April 15, 2019 /PRNewswire/ -- BacklotCars, a leading online wholesale automotive marketplace, announced $25 million in Series B funding today as the company continues its rapid growth nationwide, disrupting the $100 billion auto wholesale market.
The funding was led by Stripes, a New York-based growth equity firm with investments in a number of market-leading marketplace and software companies, including Upwork, Grubhub, Flatiron Health, and monday.com, among others. Existing investors including Origin Ventures, Pritzker Group Venture Capital, Revolution's Rise of the Rest Seed Fund, Royal Street Ventures, KCRise Fund, and Chaifetz Group also participated, bringing the company's total funding to $38 million.
"We're excited to have Stripes partnering with us on this next round of funding, as well as the continued support from existing investors," said Justin Davis, CEO of BacklotCars. "Stripes' experience with guiding high-growth, tech-driven marketplaces will be helpful as we double down on our mission of making wholesale easy."
The new capital partners join BacklotCars during a period of rapid growth. In 2018, the company expanded its geographic footprint by more than 500% while maintaining an industry-leading success rate for dealers.
BacklotCars' condition reports, five-day guarantee, transportation, and inventory financing services add value to dealers throughout the purchase process, save hours of legwork, and expedite buyers' supply chains.
"We are thrilled to be joining the BacklotCars team," said Saagar Kulkarni, Principal at Stripes. "The BacklotCars marketplace, combined with its transportation and financing products, is a complete solution for dealers. We believe their tremendous growth is proving that car dealers want a digital marketplace for buying and selling inventory. We look forward to partnering with Justin and the team as they continue to expand their footprint and create value for dealers nationwide."
Selling dealers are never charged a fee to sell through BacklotCars which immediately increases their bottom line. The company assumes 100% of the arbitration risk and legwork in order to create a more transparent and streamlined process for buyers.
"We're focused on building one platform for all dealers to transact efficiently, not just a new version of the same old auction," Davis added. "We will continue to improve our dealer experience through product enhancements, expanded inventory, and additional resources focused on the success of dealers."
About BacklotCars
Based in Kansas City, MO, BacklotCars is a leading online marketplace for auto dealers. Through BacklotCars, auto dealers, auto finance, and rental car companies can transact without having to go to physical auctions. The company's end to end solution is truly seamless for dealers as BacklotCars provides vehicle inspections, transportation, and inventory finance services.
About Stripes Group
Stripes Group is a leading growth equity firm that brings a unique, entrepreneurial approach to investing in high-growth Marketplace, SaaS and Consumer businesses around the world. For over a decade, Stripes has been partnering with market-defining companies to provide them with the support they need to accelerate growth and achieve their long-term vision. Stripes' mission is to have a culture, a set of resources, and expertise that provide entrepreneurs with an unparalleled advantage in markets that are evolving rapidly due to changes in technology and consumer behavior.
Contact: Riley Bowden
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SOURCE BacklotCars
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