Toronto-headquartered startup Clutch has secured $150 million in debt financing from funds managed by private investment management firm Neuberger Berman to drive its national expansion and inventory of used vehicles.
“We remain laser-focused on our ultimate goal of servicing 90 percent of Canadians by the end of 2023.”
– Dan Park
Founded in 2016 by Steve Seibel, Clutch is an online car retailer for pre-owned vehicles in Canada. The company first launched in Halifax in 2017 and began operating in Toronto in 2020 after securing registration with the Ontario Motor Vehicle Industry.
Clutch’s platform allows customers to browse a large selection of high quality vehicles and access its end-to-end online purchase experience. This includes financing, insurance, and home delivery. In addition to its headquarters in Toronto, Clutch currently operates in Alberta, British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan.
“Over the past year, we have seen consistent growth and have accomplished so much, but we remain laser-focused on our ultimate goal of servicing 90 percent of Canadians by the end of 2023,” said Dan Park, CEO of Clutch. “This funding will allow us to build our inventory and become the owner of the largest selection of quality pre-owned vehicles in the country,” he added.
At the end of the first quarter of 2020, Clutch had only 89 cars in its inventory. Now, the company claims thousands of certified, pre-owned vehicles listed for sale on its website.
Clutch raised its $150 million debt round just months after it unveiled $100 million in Series B funding last November. At that time, the company said it plans to expand its product offerings within this year, as well as add 200 new members to its team.
The company’s latest investment brings its total funding to around $317 million. This cumulative amount includes Clutch’s $7 million seed round in 2020, $20 million in equity financing led by Canaan Partners, $40 million in debt from Upper90, and the $100 million Series B round in November.
Featured image from Clutch.