CPE News Brief (10.6.2022) – Canada Drives has raised additional $10 million in equity funding from existing strategic investors.
The additional funding, following the $15 million investment, with a commitment for an additional investment of $25 million, from goeasy Ltd. (TSX: GSY) in June of 2022, will allow Canada Drives to expand into new markets across Canada.
Led by Cody Green and Michael Galpin, Vancouver based Canada Drives is an online car shopping and to-your-door delivery platform. Since launching its platform in 2020, Canada Drives has expanded from British Columbia to Ontario, Alberta, and most recently, Saskatchewan in May.
In August 2021, Canada Drives raised $100 million led by Honor Ventures with participation from KAR Global and other strategic investors.
photo credit: Canada Drives
Canada Drives Secures Additional $10M CAD In Funding
New funding from existing strategic investors sets Canada Drives’ plans in motion to expand service offering from coast to coast
October 06, 2022 09:00 AM Eastern Daylight Time
VANCOUVER, British Columbia–(BUSINESS WIRE)–Today Canada Drives, Canada’s largest 100% online car shopping and to-your-door delivery platform, announced the close of an additional $10M CAD in equity funding from existing strategic investors. Since launching its platform in 2020, Canada Drives has expanded from British Columbia to Ontario, Alberta, and most recently, Saskatchewan in May. This additional funding follows $40M from goeasy Ltd. in June of 2022 and will allow Canada Drives to expand into new markets across Canada.
With the largest selection of used inventory of any dealership in Canada, Canadians can pay in full or finance, sign all documents, and have vehicles delivered to their doorstep as quickly as the same day. Earlier this year, Canada Drives launched its “Sell My Car” feature, where customers are given a quote for their vehicle in under two minutes. Customers can either decide to sell their vehicle and receive the money via direct deposit, or trade it in for a new one. Canada Drives will also pay off existing loans on the customer’s current vehicle. On average, selling a car privately takes more than four weeks; now, the process can take as little as 48 hours.
“Since launching, we’ve built trust with thousands of Canadians who have sold and bought cars through Canada Drives. We continue to deliver best-in-class service with our transparent and streamlined offering, and remain the industry leader in the online auto-retailing space,” said Cody Green, Co-CEO of Canada Drives. “With these new funds, we now have our sights set on expanding further across the country to give Canadians coast-to-coast the ability to buy and sell their cars completely online.”
With its continued momentum, Canada Drives has grown its available inventory to over one thousand shoppable vehicles in B.C., Alberta and Ontario, representing the largest fully-owned single destination for used cars in each province. Furthermore, despite current economic trends, in Q3, Canada Drives saw continued growth with an 83% increase in year-over-year sales and an increase in inventory of 27% quarter-over-quarter.
“Our strategic partners have seen how quickly we reached per unit profitability earlier this year and the continued progress since then,” continues Green. “We’re grateful to have strong strategic partners who understand our business and the scalability of our offering to Canadians.”
Currently, Canada Drives is available to over 20M Canadians. This figure is expected to rise.
To learn more about Canada Drives, visit: canadadrives.ca
About Canada Drives
Canada Drives is the largest 100% online car shopping and to-your-door delivery platform available in Canada. Customers can shop for certified used vehicles, pay in full or finance, sign all documents, and have their vehicle delivered to their doorstep as quickly as the same day. Through Canada Drives, purchasing a vehicle online saves Canadians time and money and reduces the stress and pressure often associated with car shopping. Canadians can also sell their vehicle to Canada Drives at a fair price and have the vehicle picked up as soon as the next day. Canada Drives has made it possible to buy, sell, or trade a vehicle with confidence, convenience, and ease.