The rise of ACV comes at a time when online marketplaces have overtaken many brick-and-mortar retailers, and companies like Airbnb have changed entire industries. Having launched in June 2015, ACV now sells over 10,000 wholesale vehicles a month on its auction platform, which represents 1 percent of all vehicles sold at auctions today. ACV will operate in 80 markets coast to coast by year-end, up from 30 markets at the start of the year.
In total, ACV has raised over $145 million in funding since 2015. The new funding will enable ACV to double down on product and engineering, expand the breadth of its platform and provide new real-time data analytics to dealers. In addition, ACV will continue its nationwide expansion to over 140 territories in 2019. ACV is growing headcount by 30 people per month and now has 500 teammates across the country, up from 200 people earlier this year.
"Thousands of dealers around the country are turning to ACV Auctions as the trusted, transparent digital marketplace to buy and sell their wholesale inventory," said George Chamoun, ACV's chief executive officer. "We are proud to partner with Bain Capital Ventures and Future Fund to help fuel our continued growth. We have the resources to significantly increase investment in our platform, grow our passionate team across the country and continue to exceed dealers' expectations."
The latest round was led by Bain Capital Ventures and early investor Bessemer Venture Partners, and included Future Fund, Australia's sovereign wealth fund. The company's other early investors Tribeca Ventures and Armory Square Ventures also participated in the round.
"ACV has soared past startup phase at an incredible pace," said Brian Goldsmith of Bain Capital Ventures. "Its rapid growth and unwavering commitment to meet the buying and selling needs of auto dealers has proven it can and will continue to disrupt the traditional marketplaces for the better."
"We are fortunate to have supported ACV Auctions since the beginning and throughout every stage of their growth," said Bob Goodman, a partner at Bessemer Venture Partners. "We have been particularly impressed by George and the team's ability to stay ahead of the competition by moving fast and constantly innovating on their market leading product to change the way dealers buy and sell cars. We see a bright future ahead for ACV as they continue to grow nationwide and are excited to once again back the team."
As margins compress from new vehicle sales, many dealers are turning to wholesale to make up for the loss. ACV helps dealers eliminate the gamble involved in selling and buying used vehicles from traditional sources. Extensive condition reports are key to ACV's success. They provide buyers with transparent information to make informed decisions about vehicles they are interested in purchasing regardless of their distance from the seller. ACV's wholesale process enables dealers to access a national buyer pool and reduces the risk of arbitration, providing quicker inventory turnover and no surprises.
Despite already reaching an annual run-rate of selling $1 billion in gross merchandise per year, ACV still has tremendous growth ahead. The automotive auction industry sells approximately $100 billion in gross merchandise per year and there is a large segment not currently sold through auction companies. The market is large and ready for disruption, dealers are ready and ACV Auctions is here to serve them.
"One hundred percent of our wholesale inventory is sold digitally through ACV," said Scott Spadafora, used car manager at Circle Chevrolet in Shrewsbury, New Jersey. "With ACV, we're able to free up space quickly, create new deals and bring in new customers, so it's very beneficial for us. I haven't done a bid-sale since starting with the platform and I never will again."
SOURCE ACV Auctions
Edited by M. Hunt