Toronto-based CarDoor is preparing to expand its online car retailing platform across Canada after raising $3 million CAD in seed financing.
Framework Venture Partners led the round announced on September 15. The company did not disclose other investors in the round.
Launched in July, CarDoor offers an online car buying and delivery service to consumers.
Peter Misek, partner of Framework, will join founder Matt McKenzie and Mark Eleoff (founder and CEO of Eden Park Inc.) on the CarDoor board of directors.
Launched in July, CarDoor offers online buying and delivery service to consumers. The company currently lists 308 vehicles for sale on its website, ranging from Land Rovers and Acuras, to BMWs and Hyundai.
The firm’s e-commerce platform can deal with trade-ins, financing and insurance, while the company offers at-home test drives and free delivery with a 14-day money back guarantee.
CarDoor partners with dealers to ensure an extensive offering of high-quality vehicles. The free online marketplace platform enables dealers to list their inventory and participate in the digital retailing space without an additional investment in technology.
“Framework Venture Partners is thrilled to be partnering with CarDoor and supporting their next stage of growth,” said Misek. “Our team has surveyed the North American landscape of e-commerce enabled car dealers and we believe CarDoor represents a unique and powerful model providing buyers with selection and unparalleled convenience.”
CarDoor has plenty of company in the online car retail space, and compared to some, like Vancouver-based Canada Drives, its raise is small by comparison. In late August, Canada Drives announced it had closed a $100 million CAD Series B round of funding, which San Francisco-based Honor Ventures led with participation from KAR Global and other strategic investors.
In March, Toronto-based Clutch, another online retailer of used cars, raised $60 million in financing to further expansion across Canada.
None of that deters CarDoor founder and CEO MacKenzie, who said that the new round of funding will “enable us to grow and take the platform to the next level. We’re excited to expand the CarDoor experience and platform offerings to Canadian’s coast to coast in the near future.”