KeySavvy, a platform designed to simplify and secure private-party car transactions, announced an investment of $4.25 million in venture capital funding led by Bonfire Ventures — the second major financing round for the startup.

The company said it also secured strategic partnerships with three online vehicle marketplaces, including Experian’s AutoCheck.

KeySavvy said the moves indicate “significant momentum” for its e-commerce presence.

“The process of buying or selling a used car privately is archaic and hasn’t caught up with the modern e-commerce experiences people are now accustomed to,” Bonfire Ventures principal Tyler Churchill said in a news release. “Sellers must physically meet buyers to complete paperwork and exchange large sums of money, creating a stressful experience. That leaves opportunities on the table for car marketplaces, lenders and other businesses that want to provide better services to consumers but lack the support of digital rails and data.

“KeySavvy is pulling private-party vehicle sales into the future by making these transactions digital, secure and hassle-free.”

Bonfire Ventures was joined by Experian Ventures, Daher Investments and Founders’ Co-op in the latest cycle of financing. The contribution from Founders Co-op was its second in the company.

KeySavvy it will use the new funding to grow its operations and engineering team to support new partnerships, continue improving platform automation and launch a fast-financing product for buyers.

“This new round of funding is a key step toward our vision of replacing cash and checks with a safer, simpler way to transact vehicles private-party,” CEO Andrew Crowell said. “We are grateful for the ongoing support of our investors as we continue to deliver customers the absolute best experience when buying or selling a car.”

KeySavvy’s new e-commerce partners include AutoCheck, Cars & Bids and Hemmings.

KeySavvy said companies can integrate with its secure payment platform via an API that allows users to transition between the partner’s app or website and KeySavvy’s transaction platform. Lenders can also use the platform to streamline their direct peer-to-peer lending programs and reduce title issues for private-party sales, the company said.

“Our new strategic partnerships introduce car buyers and sellers to the convenience and security of KeySavvy in the spaces they already love to browse, sell and shop,” co-founder Jason Hoetger said. “We are eager to keep expanding our footprint and make worry-free transactions the standard for peer-to-peer vehicle transactions.”

KeySavvy was founded in 2022, aiming to streamline and safeguard private-party car sales. The platform is designed to eliminate fraud using identity verification, payment technology and the capabilities of a licensed dealership, and to simplify the process by providing users with step-by-step guidance for handling complex vehicle transactions.