Many industries have been forced to rapidly digitize their operations in the wake of the pandemic and the automotive industry is no exception. Typically the process of buying a car is a long, tedious in-person experience but Seattle-based company Tred is looking to shake things up.
Tred is on a mission to make the buy and sell process simpler for drivers with its online peer-to-peer marketplace. With Tred, customers can arrange test drives, pick up a car or have it delivered through an app, all without having to visit a dealership.
The company announced Tuesday that it raised $25 million in fresh financing to speed things along on its growth journey. The Series B will help Tred push product innovation, expand its market reach and grow its headcount as it continues to scale.
Every vehicle listed through Tred is privately owned and stays with its owner until the company collects payment in full from a buyer. After a vehicle is purchased, Tred conducts a registration check with the state and provides buyers with a full Carfax report. Not only that, but the company provides buyers with all of the necessary paperwork, temporary permitting and transfer of registration, so that they can avoid long lines at the DMV.
“If you look at marketplaces generally, they do take a little bit of time to develop because you need to create two different businesses, for your supply side and your demand side, which is difficult,” Grant Feek, CEO of Tred, told GeekWire.
Tred got its start in 2012 as a D2C service. The company partnered with dealerships in order to deliver cars directly to customers to test and purchase. Tred’s pivot to a peer-to-peer buy-and-sell model started in 2015.
In addition to its buy-and-sell service, the company offers access to a range of auto financing, vehicle protection and fraud protection options.
“[We’re] revolutionizing the online used car marketplace, and we look forward to continued growth and success,” Feek said in a statement.
Since its launch, Tred has cruised its way into a bevy of metropolitan locales across the U.S. All told, the company has opened 12 new locations across Los Angeles, San Francisco, Dallas, Austin and Chicago, among others.
Tred plans to grow its headcount as it continues to scale. The 30-person company is currently on the lookout for a finance director. Moving forward, Tred plans to have a slew of new positions up for grabs across its engineering department.
Several new and existing investors participated in the round, including Vivek Raj at Geneses Capital Management, Ian Anderson at Westlake Financial, and Mike Kraus at CMFG Ventures.
