APFusion, an innovative B2B automotive marketplace based in Champaign, Illinois, has closed a $6 million Series A funding round to accelerate its mission of modernizing the salvage yard and auto parts industry. Founded in 2019 by Alex Smith, a third-generation salvage yard operator, APFusion is transforming one of the most overlooked but essential parts of the automotive ecosystem.

Solving a Massive Industry Problem

Despite being a $350 billion industry, the auto parts market has remained largely offline. Only about 5% of transactions are conducted digitally, leaving most salvage yards reliant on outdated systems, fragmented inventory data, and manual processes that slow down sales and limit growth.

APFusion offers a transformative solution by integrating directly into existing Yard Management Systems (YMS). Instead of forcing yards to adopt completely new tools, APFusion acts as an invisible digital backbone, syncing real-time inventory, updating pricing, and drastically reducing order processing times. Many yards using APFusion report fill rate increases of over 30% and see manual order processes shrink from minutes to seconds.

Strengthening Supplier Connections

The platform also empowers suppliers of OEM, aftermarket, and remanufactured parts by connecting them directly to hundreds of salvage yards across the country. With APFusion, suppliers can scale quickly and manage inventory and pricing dynamically without building separate integrations or sales pipelines for each yard.

This unified connection enables suppliers to expand their market reach and improve operational efficiency while giving salvage yards immediate access to a wider variety of parts.

The Hidden Growth Lever for Founders

A key insight behind APFusion’s success lies in the strategy of becoming infrastructure rather than just a service. By embedding deeply into the day-to-day operations of salvage yards, APFusion transforms from a “nice-to-have” vendor into a mission-critical system. Once a company’s core operations depend on your technology, the costs and friction of switching rise significantly, and your product becomes almost irreplaceable.

This approach doesn't just improve retention - it compounds growth through network effects and makes pricing power stronger over time. For founders, this is a powerful lesson: instead of simply adding more features, think about how your product can become an essential operational backbone. That’s the kind of strategic moat APFusion is building within the salvage yard industry.

Strong Market Validation

The recent Series A funding follows a $6.5 million seed round, bringing APFusion’s total funding to over $12 million to date. The latest round was backed by an impressive group of investors, including I2BF Global Ventures, SNAK Venture Partners, Somersault Ventures, Left Lane Capital, Verb Ventures, as well as several notable angel investors.

This diverse and experienced group of backers highlights strong market confidence in APFusion’s mission to modernize an overlooked and under-digitized industry. Their support signals a shared belief that APFusion is uniquely positioned to lead the transformation of salvage yard and auto parts operations into a more efficient, connected, and scalable digital future.

Technology Built for Real-World Needs

APFusion’s leadership is rooted in firsthand industry experience. CEO Alex Smith’s family background in salvage yard operations gives the company a unique understanding of customer pain points. Every product decision is guided by practical knowledge of what actually works in the yard environment, ensuring adoption and long-term success.

Key features like Image Sync make it easy for yards to automatically list parts on marketplaces like eBay Motors, opening up additional revenue streams beyond local buyers. Meanwhile, APFusion’s analytics provide critical insights into pricing trends, inventory turnover, and operational performance, empowering yards and suppliers to make smarter business decisions.

What’s Next for APFusion

With fresh capital in hand, APFusion plans to accelerate its product roadmap, expand integrations with new suppliers and yards, and strengthen security and compliance standards. The team also plans to grow engineering and customer support functions to ensure a high-quality experience as demand continues to scale.

The broader vision is to become the essential digital infrastructure that connects and powers the entire salvage yard and parts supplier ecosystem.

Transforming a Traditional Industry

APFusion’s $6 million Series A funding represents more than a growth milestone - it is a major step toward digitizing a massive but under-served market. By enabling real-time inventory visibility, seamless supplier connections, and advanced data-driven decision-making, APFusion empowers salvage yards and suppliers to operate more efficiently and profitably.

With its strong leadership, deep industry insight, and backing from top investors, APFusion is well-positioned to lead the industry into a new era of digital transformation and growth.