On-line automobile retailer Clutch, which was based in Halifax, introduced on Monday the completion of a $60-million spherical of fundraising.
The corporate raised $20 million in fairness financing, led by Canaan, and $40 million in debt financing from Higher90.
Clutch CEO Dan Park mentioned the cash will primarily be used for progress.
“We’re going to proceed to develop throughout Canada and to spend money on our present markets, that are Halifax, Toronto and Vancouver,” Park mentioned in a telephone interview, including that there’ll most likely be future rounds.
“We’re going to proceed to hopefully scale. We’ll probably increase subsequent rounds sooner or later, however this offers us sufficient capital to proceed working for the following a number of years.”
Different buyers within the fairness financing embrace Higher90, Stephen Chau (former head of product at Uber Eats) plus earlier buyers BrandProject, Actual Ventures, FJ Labs and International Founders Capital.
Clutch, which has 19 staff in Halifax and 68 throughout the nation, has offered greater than a thousand used automobiles right here since commencing operations in 2017.
Its mannequin provides prospects a completely on-line shopping for expertise, together with financing and insurance coverage, and at-home supply and check drives. It doesn’t have a dealership, as a substitute storing automobiles in a warehouse.
Park described 2020 as “a rollercoaster experience,” with gross sales in April declining by greater than 80 per cent, then rebounding by June to just about twice its earlier month-to-month gross sales peak. Clutch is experiencing 3 times year-over-year progress in 2021.