ACV Auctions, the US-based operator of an online used vehicle auction platform raised $31m in a series C round yesterday featuring SoftBank NY, a subsidiary of telecommunications and internet group SoftBank.
The round was led by Bessemer Venture Partners and included fellow venture capital firm Tribeca Ventures and VC fund Armory Square Ventures.
Founded in 2014, ACV Auctions operates a platform for car dealers to sell and buy used vehicles through a 20-minute auction process. It is currently active across 35 markets in the US and aims to more than double that number by the end of 2018.
The company will use the series C funding to drive an expansion that will primarily focus on entering the west coast region of the US. Cash will also go to technology development, including its data analytics capabilities, and improving customer experience.
George Chamoun, chief executive of ACV Auctions, said: “Our goal is to bring trust and transparency to the wholesale vehicle market by providing dealers with an easy-to-use digital platform that saves them time, money and resources.
“The additional funding will enable us to innovate on top of our existing platform while also fuelling growth into new markets at a rapid rate.”
ACV Auctions has now secured a total of $53m in equity funding, having raised $15m in a March 2017 series B round also led by Bessemer Venture Partners. It has not named additional investors in the series B round.
SoftBank NY had previously backed the company’s $5m series A round, which was led by Tribeca Venture Partners, with participation from Armory Square Ventures and Rand Capital, in 2016.
ACV Auctions had received $1m the previous year when it won the 43North startup contest, adding to $1m in angel funding.