After spending over a decade building and scaling an online marketplace for heavy equipment rentals, with $60 million CAD in total funding, Kitchener-Waterloo construction technology company Dozr’s assets were unceremoniously sold last month to help a stiffed lender recoup some of its capital.
The process kicked off in late September when senior secured creditor RBC petitioned for Dozr to be placed into receivership after the business defaulted on its nearly $3.4-million CAD credit facility with the bank, Ontario Superior Court of Justice documents state. A report from court-appointed receiver KPMG shows the request came amid “significant liquidity challenges” for Dozr.
KPMG took control of Dozr in early October, and late last month, KPMG sold Dozr’s assets to a newly launched Canadian entity named 17416512 Canada Ltd.
Dozr was once valued at $75 million CAD, with more than $60 million CAD in total funding.
A federal corporation search indicates 17416512 Canada Ltd. was formed in October and is based in Toronto. It’s led by CEO Andrew Ladouceur, the former COO of Toronto-based embedded commerce tech startup Bonsai, with Bonsai co-founder and ex-CEO Saad Siddiqui as a significant shareholder.
Ladouceur and Siddiqui are also co-founders of Inspiration Commerce Group, which claims to be “building and acquiring a global network of high-intent platforms to help users find and buy their favourite products.” The private equity-style e-commerce roll-up company shared last year that it was on pace to achieve profitability and planned to acquire at least four businesses in 2025.
In preparation for that sale, Dozr’s remaining staff, which included 20 employees and 24 contractors when KPMG was first appointed, were laid off, though 17416512 Canada Ltd. is interested in resuming Dozr’s operations and rehiring ex-employees to support those plans, court documents indicate.
It remains unclear what led Dozr to this point and what the acquisition means for the future of the company. BetaKit has reached out to former Dozr leaders, employees, and investors for comment on what went wrong for the startup, and contacted new owner 17416512 Canada Ltd. for clarity on the present status of Dozr and its longer-term plans for the firm’s marketplace. At the time of publication, Dozr’s website appeared to still be active.
Another deal and a “disappointing” outcome
Speaking with BetaKit on condition of confidentiality, a source familiar with Dozr’s operations claimed that prior to being forced into receivership, Dozr was nearing profitability and had a signed letter of intent to merge with a different company—a larger, undisclosed American competitor—as part of a more favourable deal.
The source claimed that Dozr had tried to strike an agreement with RBC to avoid entering receivership, but the bank was unwilling to work with the company.
RBC said it declined to respond to BetaKit’s request for comment.
Though court documents do not disclose the price that 17416512 Canada Ltd. ultimately paid to buy Dozr’s assets, based on available information and the circumstances of the deal—including the fact that RBC expected to suffer a loss on its secured advances—it appears unlikely that Dozr’s co-founders, employees, or equity investors gained much financially from the distressed sale.
A spokesperson from Dozr investor BDC Capital described the construction equipment rental market as “inherently complex and fragmented,” and acknowledged to BetaKit that “these dynamics create challenges for marketplace models like Dozr’s.”
“While the outcome was disappointing for the company’s management, team, clients, and investors, we are pleased that Dozr continues to operate under Canadian ownership,” the BDC spokesperson said. The spokesperson did not disclose the financial terms of the sale.
Dozr connects contractors with third-party rental companies across Canada and the United States. The company has claimed to offer the largest online marketplace for heavy equipment rentals, helping hundreds of thousands of contractors find the machines they need from over 4,000 suppliers across North America.
Once valued at $75 million CAD, Dozr built that marketplace and developed white-label software to help rental companies integrate e-commerce capabilities with more than $60 million CAD in total funding.
RELATED: Dozr raises $27.5 million in Series B funding to support US expansion
Led by folks with past experience in construction and tech, the family-run startup was launched by husband-and-wife team Kevin Forestell as CEO-turned-chair and Erin Stephenson as CMO, alongside Kevin’s brother Tim Forestell as chief revenue officer and chief commercial officer. This trio—who appear to have stuck with Dozr until the end—was joined by Adeel Zaman as co-founder and CTO from 2017 until 2023.
In February 2022, Dozr was flying high after closing a $27.5-million CAD Series B from Builders VC, BDC Capital’s Growth Venture Fund, and BaseCamp Equity Partners that included “some secondary” to fuel its US expansion. That round came as Dozr had seen “tremendous growth” on the back of a pandemic-driven rise in construction activity, as well as supply chain disruptions and manufacturing delays that had hampered access to heavy equipment.
At the time, Dozr had approximately 65 employees and planned to double the size of its workforce to 130 by the end of that year. That July, Dozr secured the loan from RBC for general corporate purposes. Court documents indicate the loan was secured against Dozr’s intellectual property (IP) and the proceeds from it.
Downturn fuels layoffs and cools investment
Since the COVID-19-ear construction boom, conditions have deteriorated in both the technology market and broader economy. High interest rates, tariffs, and economic uncertainty have put a damper on construction activity, and equipment sales and rental demand have decelerated.
During the downturn, Dozr altered its staffing plans. The Waterloo Record reported that Dozr laid off 20 percent of its workforce in February 2023. According to LinkedIn Insights, the company had 82 employees as of April 2023 and dipped to 63 by May 2025, indicating additional cuts.
RELATED: Dozr founding CEO Kevin Forestell moves to chair while Dave Frazier joins as president
As BetaKit reported in May, in what he described as a mutual decision between him and the firm’s board, Dozr founding CEO Kevin Forestell transitioned to chair and the company brought on Dave Frazier as president to replace him.
Kevin Forestell confirmed at the time that Dozr had secured $16 million CAD in additional capital from existing backers since its Series B round and shed staff to streamline its operations and scale its business more efficiently, but he did not share exact figures. The Dozr chair claimed that the company had been investing in automation but was continuing to grow.
Court documents have since revealed that between January and Aug. 31 of this year, KPMG found that Dozr’s US business generated about $12.4 million USD ($17.5 million CAD), while its parent company in Canada brought in $1.6 million CAD. This figure would put the company on pace to surpass the $12.5 million to $13 million CAD in net sales, which the source said the company posted in 2024.
The source told BetaKit that as market conditions shifted, Dozr shed staff as part of a push to hasten its path to profitability amid increased difficulty raising external capital, noting that Dozr became earnings before income, taxes, depreciation, and amortization-positive (EBITDA) just months before entering receivership.
RBC forces asset sale
KPMG found that Dozr had been facing a cash crunch and that the company had spent the past 12 months trying to raise additional financing or identify a strategic buyer within the equipment rental and tech sectors.
Dozr and its investors could not convince RBC or the court to restructure its loan.
The receiver reported that Dozr spoke with seven potential new investors and more than 60 prospective acquirers, but was ultimately unable to strike a deal as prospective backers were concerned by Dozr’s outstanding debt from RBC and trade payables, and they wanted both satisfied or settled before closing.
Despite prolonged efforts, Dozr and its investors could not convince RBC or the court to restructure its loan or give the company more time. RBC cited the risk of its security deteriorating and a loss of confidence in Dozr’s management as some of the reasons it asked for a receiver to be appointed. The court approved the ask and appointed KMPG, which embarked on an expedited sales process to mitigate any further damage.
17416512 Canada Ltd. agreed to buy Dozr’s assets, including its contracts, accounts receivable—which totalled nearly $5 million USD—IP, and personal property, but not its cash or equity interests. The deal closed on Oct. 31, following court approval.
Feature image courtesy Dozr.