Vehicle e-tailer Canada Drives secures $40M to accelerate expansion
The new partnership with Goeasy will simplify the purchase financing process.
Vancouver-based auto e-tailer Canada Drives announced the close of CAD $40 million in funding from Goeasy, a non-prime consumer lender. The funding comes 10 months after a $100 million round led by Honor Ventures.
Why it matters: The Canadian car-buying and -selling industry has become a crowded space with multiple new marketplaces launching over the past few years in response to increased consumer demand. As a result, the average used car has seen a 36 percent price increase over the last year. In lockstep, Canada Drives says sales have increased 580 percent in the past year (Q1 2022 vs. Q1 2021). The firm also said it tripled its inventory and has doubled its workforce to over 700 employees.
Shifting gears: Now operational in B.C, Alberta, Ontario, and Saskatchewan, the 12-year-old company said it would use the capital to expand into new provinces, grow automobile inventory, and update its digital platform. It also aims to double the amount of certified used vehicles available in existing markets and grow its team further.
Next stop: As part of the deal, Canada Drives and Goeasy plan to partner to further integrate automotive financing into the online car buying experience. The goal is to be the easiest place to buy or sell a car in Canada. “The new capital, alongside the strategic partnership, will enable us to grow our available inventory, enhance our market-leading service, and continue to expand across the country,” said Cody Green, co-CEO of Canada Drives, in a statement.
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