Online Car Marketplace Tred Secures $25 Million in Series B Funding to Fuel Further Expansion

By Adriaan Brits | Tuesday, 09 November 2021 | Startup, Tech

TRED, a startup company that runs a peer-to-peer (P2P) digital car marketplace, has secured $25 million in a Series B business funding round.

Benefiting From the Supply Chain Shock

Both new and existing business investors like Vivek Raj at Geneses Capital Management, Ian Anderson at Westlake Financial, and Mike Kraus at CMFG Ventures, took part in the business funding round.

The startup company will use the fresh business funding to develop and launch new products, as well as expand its business partnerships and engineering team. TRED has offices across various locations in the US, namely Seattle, Los Angeles, Portland, San Francisco, Dallas, Houston, Austin, San Antonio, Miami, Tampa Bay, Orlando, Jacksonville, and Chicago.

TRED was launched with the aim to improve the buying and selling experience of cars. In addition to these services, the startup company also offers business services like vehicle protection, auto financing, vehicle value reports, fraud protection, and Guaranteed Asset Protection (GAP).

Consumers are able to schedule test drives, get in touch with sellers, make online payments, pick up the car personally or have it delivered, and more.

Within the marketplace, sellers are in control of the selling price while TRED is in charge of marketing and transacting their vehicles. On the other hand, the startup company offers buyers quality assurance and a 150-point buyer's inspection.

“This funding will allow TRED to invest in its products, expand its locations and services throughout the country, and further develop its partnerships. TRED is revolutionizing the online used car marketplace, and we look forward to continued growth and success through this significant backing,” said Grant Feek, CEO of TRED.

“Westlake Financial has been a terrific lending partner for TRED car buyers over the past couple of years, and we're extremely excited to further develop this relationship,” added Feek.

The COVID-19 outbreak has significantly altered the way consumers buy and sell cars, a process that previously required extended time periods and in-person commitments. TRED’s marketplace is taking advantage of this shift and Feek believes the trend will continue as more and more consumers are now comfortable shopping online.

TRED is also benefiting from the supply chain shock as its competitors, which source cars from private sellers, are experiencing long delays. The main competitors today include other online car marketplaces such as Carvana, Vroom, and Carvago.

“We’ve been growing quite a bit in the last couple years,” Feek added.

The startup company is betting that consumers will continue to buy and sell cars more regularly through online channels. A special focus is on optimizing the user experience for mobile app users, with the number of people using only their phones instead of visiting car dealerships expected to continue to surge.

Following the Series B funding round, TRED’s total funding raised now stands at $37 million. The startup company was funded in its seed round by Chris Sacca, Rick Wagoner, and Great Oaks Venture Capital.

Summary

Online car marketplace TRED announced today it has raised $25 million in a Series B business funding round from both new and existing investors. The startup company plans to use the raised capital to expand its product offerings, locations, and staff.

About the Author

Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.