Bidbus, a Los Angeles-based startup that lets dealerships compete for used cars online, has raised a $15 million Series A as it looks to expand beyond California and Texas. The round was led by Ibex Investors and included participation from Mucker Capital, FJ Labs, Motley Fool Ventures, Data Point Capital, Walter Ventures and Yossi Levi, known as the Car Dealership Guy.
The company’s platform is designed to give private sellers a faster alternative to traditional trade-in and online buyout options. According to the startup, its users typically receive offers that are about $2,000 to $3,000 higher than what Carvana pays. Bidbus says the system works because multiple dealers bid within a short window after a car is listed, creating more direct price discovery for sellers.
Co-founder and CEO Duke Yan said the idea came from his own experience buying and selling cars, including a case where offers for his mother’s vehicle were so low that he grouped dealers together and watched them bid the price upward. He said the company’s goal is to make selling a car feel more transparent and competitive, while also helping dealers find higher-quality inventory from private owners.
Expansion and dealer traction
Bidbus began as a bootstrapped effort and has now helped people sell around 10,000 cars, according to the report. The startup says it has also added dealership groups including Lithia Motors and Penske Automotive as it broadens its reach. Ibex partner Jeff Peters said he was initially cautious when the company was limited to Los Angeles, but became more interested as Bidbus entered new markets and showed signs of scale.
Source: techcrunch.com
