Auto Salvage Platform Gains $6.5 Million in Seed Financing from APFusion
In a significant move, APFusion, a B2B marketplace and SaaS company for the auto salvage industry, has raised $6.5 million in Series Seed financing, bringing its total funding to $7 million. This round was co-led by Left Lane Capital and Bedrock Capital, with continued support from M25.
The funding follows a year of significant growth for APFusion, which saw its year-to-date Gross Merchandise Value (GMV) more than triple. The company's rapid growth over the last year is due to its continued effort to work with its customer base to identify the features and product enhancements that will best support not just its customers but the auto salvage industry as a whole.
APFusion's platform has been a game-changer for several salvage yards, including M25. Victor Gutwein from M25 describes Alex Smith, APFusion's CEO & Founder, as arguably the single best person to take on the challenge of modernizing the auto salvage industry with APFusion. The integration of APFusion's Aftermarket and Surplus catalog into M25's YMS has streamlined sales and operations, saving significant time by eliminating the need to call multiple vendors and check alternate supplier websites.
Moreover, APFusion's drop-ship service directly to customers has removed delivery costs from M25's local trucks. On-screen pricing and hourly updates populating into M25's system have simplified part sales for them. The automated interface in APFusion's platform generates tickets and PO#s in M25's system with a few simple clicks.
Derek Urben from Left Lane Capital, who is joining APFusion's Board of Directors, finds APFusion to have set themselves apart and hit the product-market-fit sweet spot. He believes that APFusion's unique approach to the auto salvage industry, focusing on technology and customer needs, has allowed it to make a meaningful positive impact.
APFusion, which initially was a marketplace connecting new aftermarket parts providers with salvage yards, is now expanding its platform to include software tools. 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.
Besides Left Lane Capital and Bedrock Capital, institutional investors involved in APFusion's Series Seed financing include High-Tech Gründerfonds and UVC Partners. With this funding, APFusion is poised to continue its mission of modernising the auto salvage industry and helping salvage yards increase sales and efficiency.
According to APFusion, it is unique because it's one of those few companies that get the opportunity to truly make a meaningful positive impact within an industry, moving a technologically underserved industry forward. The company's highly engaged customers have helped guide its path as a company, and it remains committed to supporting the auto salvage industry in its digital transformation.
