Clutch.ca Raises $35M, Valued Over $400M

Clutch.ca, Canada's largest online car dealer, recently concluded a Series D funding round, raising CAD 50 million ($35.1 million USD). This investment round was spearheaded by Altos Ventures with contributions from Industry Ventures, BMO Capital Partners, and existing supporters like Flight Deck Capital and FJ Labs. The funding has elevated Clutch's valuation beyond CAD 575 million ($404 million USD) according to CEO Dan Park, although exact numbers were not disclosed. Clutch plans to utilize the fresh capital to penetrate new markets, establish vehicle reconditioning facilities, and expand inventory. With a robust annual revenue run rate of $281 million USD, the company sells approximately 10,000 cars yearly. Since its inception in 2016, Clutch has purchased 27,000 cars from private sellers through its instant car-buying service. The company rebounded from a valuation drop and layoffs following a post-pandemic decline, demonstrating resilience and a readiness to navigate challenges such as a potential US trade war. As part of its expansion efforts, Clutch is returning to Western Canada and has increased its workforce to around 240 employees.