APFusion Raises $6.5M to Digitize Auto Salvage

Champaign, Illinois-based startup APFusion, which provides a B2B marketplace and software solution for the automotive salvage industry, recently announced $6.5 million in Series Seed funding. The investment was co-led by Left Lane Capital and Bedrock Capital, with previous investor M25 also participating. This brings the company’s total funding to $7 million with the stated aim of expanding their product offerings and infrastructure.

Founded to bridge the gap between salvage yards - which primarily deal in used automotive parts - and new aftermarket parts suppliers, APFusion’s platform addresses a historically fragmented and technologically underserved industry. By connecting salvage yards with a broader inventory and augmenting this marketplace with additional software tools, the company seeks to help these businesses increase sales efficiency and modernize operations.

The salvage sector plays an important role in the automotive industry, extending the life cycle of parts and reducing waste. In the U.S., salvage yards generate billions annually, but many have lagged behind other industries in adopting digital solutions.

The Midwest is a well-known hub for automotive manufacturing, distribution, and related aftermarket services with Illinois also ranking among the top states for manufacturing overall. APFusion aligns with this regional strength and reflects a growing ecosystem in the region, one becoming increasingly aligned to historically strong local industries. “We weren't surprised that it was this Champaign-based startup that had discovered this unique problem in an overlooked industry - we're used to seeing that." said M25 Managing Partner, Victor Gutwein in a press release.

Over the past year, APFusion has seen rapid growth, with GMV (gross merchandise volume) more than tripling and its product catalog expanding to nearly 200,000 items. The vendor network continues to add around 3,500 products weekly. The company plans to use the new capital to enhance its engineering team and continue to develop software tools that optimize salvage yard operations, from inventory management to sales processes.

APFusion’s success reflects the wider potential of applying digital solutions to legacy industries. As manufacturers and suppliers seek leaner, more responsive operations, modern and innovative platforms can begin to help reshape how legacy industries operate.