CARY, N.C. -

Online car retailer Shift has landed a $38 million round of Series C funding led by BMW iVentures.

Making the announcement on Wednesday morning, Shift said the round also included new investors DCM Ventures and G2VP, and previous investors DFJ, Highland Capital and Goldman Sachs Investment Partners.

BMW iVentures partner Christian Noske is now on Shift’s board of directors, with DCM’s Jason Krikorian and G2VP’s Brook Porter joining as board observers.

“We are interested in technology companies that challenge the status quo and build products that help improve transportation options for consumers,” Noske, the BMW iVentures partner, said in a news release.

“Buying a car is one of the most expensive purchases most people ever make and we appreciate that Shift is committed to making this experience not just good, but great,” Noske said. “It is obvious that with Shift's proprietary technology, world-class team of engineers and forward-thinking workforce, the company is set to become a leader in the used-car market.”

The company said over half of its customers are between ages 18 and 35. Nearly three-fourths of those using the loan piece of the platform fall into that age group.

Shift said this resonance with millennials has helped drive its success, noting that it is the “leading seller of pre-owned cars” in Los Angeles and the San Francisco Bay Area.

Given those trends, Shift is looking to expand to new markets, and part of this funding will be used to do exactly that. The company also plans to invest further in technology and adding to its team.

It currently has operations in the San Francisco Bay Area as well as the Los Angeles and San Diego regions, with an engineering hub in  Washington, D.C.

This is not the first time Shift has worked with a more traditional auto industry player like BMW. 

It was announced in December that Hertz would use Shift’s online vehicle sales platform to sell its fleet vehicles directly to consumers.

In June, Shift announced a BMW giveaway contest, revealing the winner earlier this month on Facebook. 

“BMW is, without a doubt, one of the most iconic car brands in the world, which truly makes this a pinch-me moment for the entire Shift team,” Shift founder and chief executive George Arison said in a news release. “We are also honored to have DCM and G2VP join us with such significant participation in this round.

“Over the past two years, we have improved and adjusted our model with the same mission in mind: to provide customers with a better car buying experience by providing an unprecedented level of transparency and test drives delivered to their door. We could not ask for better partners than BMW iVentures, G2VP and DCM.” 

This news also follows fellow online car retailer Vroom announcing a $76 million round of funding on Thursday. That brought its total equity funding up to $295 million.

Vroom said in a news release that this Series F round was led by “certain funds and accounts advised by T. Rowe Price Associates, Inc.”, which was joined by prior investors L Catterton, General Catalyst Partners and PICO Venture Partners.