Canada Drives raises $100M to accelerate online auto sales across Canada
The company plans to grow its 500 person team by over 200 in the next twelve months.
Canada Drives was founded in 2010 when UBC grad Cody Green, working for an auto retailer, noticed inefficiencies in the sales process when customers would choose a vehicle and then be declined for financing.
He set out to help buyers get approved for financing in advance—and then realizing the scale of the problem and opportunity, he built an online platform as a solution.
By 2016, the company he created had grown 2,703%, and in 2019, Canadian Business recognized Canada Drives as one of the country’s Best Managed Companies.
Fast forward to today, and on the heels of a transformation in auto retail, a shift to sales instead of financing, and rousing growth, Canada Drives announced the close of $100 million in funding led by Honor Ventures with participation from KAR Global and other strategic investors.
“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,” said Cody Green, co-CEO of Canada Drives. “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.”
Over the last ten years, Canada Drives has helped 1 million Canadians finance and purchase cars. Earlier this year, the company expanded its retail model from British Columbia to Ontario, and since expanding, the company’s customer base has grown 50% month over month
The investment will be used to further expand Canada Drives service across Canada to new markets and will enable the company to grow its 500 person team (of which more than 100 are in technical roles) by over 200 in the next twelve months. The company said its hiring in every department including engineering, design, marketing, customer service, operations and logistics.
”The market need for a digital end-to-end platform to support the full life cycle of the used car-buying experience is clear,” said Jeffrey Housenbold, founder of Honor Ventures, who will join Canada Drive’s board of directors. “The customer growth Canada Drives has seen in only a short amount of time makes it evident they’re providing a service that Canadians want.”
In Housenbold, Canada Drives has secured the services of a business giant. He was previously a managing partner at the SoftBank Vision Fund and has served on the boards of DoorDash, Groupon, Compass and Opendoor.
Canada Drives currently has over 1,000 vehicles available for sale in BC and Ontario, and is scaling rapidly to grow that number. Its used vehicle inventory spans over 35 makes and 170 models ranging from sedans and SUVs to coupes and convertibles.
For more funding news, subscribe to the Sunday Briefing: