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§ Private Profile · Kansas City, MO, USA
Online B2B marketplace for auto dealers to buy and sell wholesale vehicles, offering integrated inspections and financing.
Based in Kansas City, Missouri, BacklotCars operates a digital business-to-business marketplace that enables automotive franchise dealers and independent wholesalers to buy and sell used vehicles online without attending traditional physical auctions. The platform generates revenue through transaction fees while offering integrated dealer services such as comprehensive vehicle inspections, transportation logistics, and floorplan inventory financing. Prior to its acquisition, the enterprise raised approximately $38 million in venture capital funding from institutional investors including Stripes and Origin Ventures. In November 2020, the major auto auction corporation KAR Global acquired the business for $425 million to expand its suite of digital marketplaces. The parent company subsequently rebranded to OPENLANE in 2023, consolidating the wholesale platform into its unified national automotive wholesale system. BacklotCars was founded in 2015 by Justin Davis, Ryan Davis, Josh Parsons, and Fabricio Solanes.
BacklotCars has raised $56.0M across 4 funding rounds.
BacklotCars has raised $56.0M in total across 4 funding rounds.
BacklotCars is a Kansas City-based technology company that operates an online wholesale automotive marketplace, enabling dealer-to-dealer vehicle transactions without physical auctions.[2][3][4] Founded in 2014, it offers a 24/7 bid-ask platform with integrated services like certified inspections, transportation logistics, inventory financing, and AI-driven personalized recommendations, serving auto dealers, finance companies, and rental car firms across 46 U.S. states.[2][3][5] The platform solves key pain points in the $100 billion wholesale market—limited inventory access, inefficient transport, and manual processes—by streamlining buys, sells, and trades nationwide, reducing costs and enabling faster deals.[1][2][4] Acquired by KAR Global in 2020 for $425 million, it has shown growth stability post-integration, with tools like real-time data insights via Domo enhancing transparency and user outcomes.[2][4]
BacklotCars was founded in 2014 by Justin Davis and Josh Parsons, who identified flaws in the traditional automotive wholesale system while working at Manheim Auctions.[1][2][4] Frustrated by restricted inventory access, capital constraints, and slow transport, they launched a digital platform to disrupt the sector, much like Super Dispatch modernized logistics.[1] Early traction came from its clean, open design allowing seamless dealer networking without auction downtime, quickly gaining users and data critical mass.[3][4] A pivotal moment arrived in September 2020 when KAR Global acquired the company for $425 million, retaining its leadership and Kansas City headquarters to bolster KAR's digital remarketing ecosystem.[2][3][5]
BacklotCars stands out in automotive wholesaling through technology-driven efficiencies and transparency:
These features eliminate traditional hassles like emailing, calling, or load boards, fostering faster, frictionless transactions.[1][4]
BacklotCars rides the digitization wave transforming the $100 billion U.S. vehicle wholesale market, shifting from opaque, location-bound auctions to online, data-rich platforms amid rising e-commerce in autos.[2][3][5] Timing aligns with post-pandemic demand for remote, efficient B2B trading, accelerated by its 2020 KAR acquisition providing scale and stability during growth challenges like 2022 scaling risks.[2] Favorable forces include AI adoption for personalization, logistics APIs reducing transport friction, and insulation from tariffs due to its domestic, service-based model.[1][2] It influences the ecosystem by setting transparency standards—e.g., real-time data and inspections—for competitors like CarOffer and EBlock, while integrations expand dealer networks and carrier efficiency.[1][3][4]
BacklotCars is poised to deepen market leadership through KAR's OPENLANE synergies, expanding AI recommendations, condition reporting, and off-lease access to capture more wholesale volume.[3][6] Trends like EV wholesaling, advanced telematics for inspections, and further logistics automation will shape its path, enhancing speed and trust in a fragmenting supply chain.[1][2] Its influence may evolve by pioneering fully embedded financing and predictive analytics, solidifying disruption of legacy auctions while maintaining post-acquisition momentum—proving digital platforms deliver nationwide reach and better dealer outcomes.[2][4]
BacklotCars has raised $56.0M across 4 funding rounds. Most recently, it raised $25.0M Series B in April 2019.
BacklotCars has raised $56.0M in total across 4 funding rounds.
BacklotCars's investors include Saagar Kulkarni, Aleph VC, Bam Ventures, Entrée Capital Ventures, F2 Capital, Grotech Ventures, Insight Partners, KCRise Fund, Kickstart Fund, Lightbank, Origin Ventures, Revolution.