Online car shopping platform Canada Drives has raised $40 million Canadian dollars (about $31 million) in equity funding from non-prime consumer lender goeasy, according to a Monday (June 27) press release. As part of the funding deal, Canada Drives and goeasy will partner to offer online automotive financing.
The fresh capital will be used by Canada Drives to expand its operations into new markets and boost its digital platform, the release stated. The company operates in British Columbia, Alberta and Ontario, and it expanded into Saskatchewan in May, when it also launched the fully-automated “Sell My Car” feature.
See also: Digital Payments Pave Way for Smoother Car Shipments
“The new capital, alongside the strategic partnership, will enable us to grow our available inventory, enhance our market-leading service, and continue to expand across the country,” said Canada Drives Founder and Co-CEO Cody Green in the release.
Part of the new capital will go toward doubling the number of certified used vehicles available in existing markets and expanding the team to support the company’s growth, according to the release.
Canada Drives has grown sales 580% over the past year, and it raised $100 million Canadian dollars (about $77.7 million) last year, the release stated.
In April, Volvo Cars took a minority stake in European online car retailer Carwow.
Read more: Volvo Invests in Carwow, Expecting to Sell Half Its Cars Online by 2025
The Carwow stake is expected to boost Volvo’s digital sales and appeal on social media. About one in 10 new model Volvos are sold only online.
“It is important to stick out in the world today,” said Magnus Fredin, head of Volvo’s online business, at the time. “We need to adapt the content of what the customers are looking for.”
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