Canada’s largest online car shopping and delivery platform says it plans to expand with the help of $100 million in new funding.
Canada Drives announced the funding on Wednesday (Aug. 18), saying the money will help bring the company’s online car buying and delivery service to new markets. It also hopes to add more than 200 people to its team and more than double the number of certified used vehicles available to consumers.
“This is an amazing time to be a car shopper in Canada,” said Cody Green, Co-CEO of Canada Drives. “This funding will support us in our goal of being able to fully service over 80 percent of Canadians with our car purchasing and delivery service by the end of the year.”
According to a company news release, Canada Drives has more than 1,000 vehicles up for sale in Ontario and British Columbia, and is “scaling rapidly” to expand that number. Founded in 2010, the company recently expanded its retail model from British Columbia to Ontario, allowing customers to buy used vehicles online and have them delivered the same day.
As PYMNTS reported earlier this month, Canada Drives’ American cousin Carvana enjoyed an impressive second quarter, with revenues rising almost 200 percent from the same quarter in 2020.
The company also sold more than 100,000 vehicles for the first time — a 96 percent jump from the previous year — with Carvana projecting that it’s on the path to selling more than two million cars per year.
The Canada Drives funding round was led by Jeffrey Housenbold’s Honor Ventures, with participation from KAR Global and other strategic investors. Housenbold will join the company’s board. He was previously managing partner at the SoftBank Vision Fund and has served on the boards of DoorDash, Chegg, Grab, Caesars, Rappi, Groupon, Compass and Opendoor.