Canada-based online car shopping and delivery service provider Canada Drives has wrapped up a C$100m ($78.5m) series B round from investors including used vehicle sales platform developer KAR Global.
Venture capital firm Honor Ventures and unnamed strategic investors also participated in the round.
Founded as a car financing company in 2010, Canada Drives launched its online car retail platform in 2020, starting in British Columbia. In May 2021, it expanded its e-commerce platform to Ontario with reported plans to enter Alberta next month.
Growth equity investor Anthos Capital had previously invested another $75.4m in a January 2019 series A round.
The new funding will allow the firm to grow its workforce by over 200 people over the next year – up from its current 500 – capitalising on the 50% month-over-month growth it has seen in its customer base since making the move into Ontario.
It also plans to double its existing number of available cars for sale, which currently stands at more than 1,000 in its current markets.
Cody Green, co-CEO of Canada Drives said: “This is an amazing time to be a car shopper in Canada. We are excited to be bringing our online car shopping and to-your-door delivery experience to more markets in the coming months.”
“This funding will support us in our goal of being able to fully service over 80% of Canadians with our car purchasing and delivery service by the end of the year.”
