A Los Angeles-based startup called Bidbus has raised a $15 million Series A funding round led by mobility fund Ibex Investors, as it seeks to expand beyond its initial markets of California and Texas. The company runs a digital marketplace where multiple car dealerships bid against one another to buy a private seller's used car, a model its founders say yields offers roughly $2,000 to $3,000 higher than those from online buyers such as Carvana. The round matters because it signals investor confidence in a marketplace approach to a common consumer frustration: getting a fair price for a used vehicle without the hassle of visiting dealerships.

Co-founder and CEO Duke Yan says the idea came after dealers made insultingly low offers on his mother's car, so he put them in a group chat and watched them bid the price up. Bidbus profits from the spread between what online sellers pay and what dealers will offer, taking a cut while still leaving sellers better off. Once a car is accepted, dealers have only a few hours to bid, with live offers displayed prominently in an app inspired by Robinhood and TikTok, encouraging users to share screenshots. The startup has helped sell around 10,000 cars and signed dealership groups including Lithia Motors and Penske Automotive, though Yan admits growth was tough, including having to ban one large dealer for low-balling. The round also drew participation from Mucker Capital, FJ Labs, Motley Fool Ventures and others.