Canadian online car retailer Clutch has successfully raised over CAD 50 million in its Series D funding round. The investment was led by Altos Ventures, with participation from Industry Ventures, BMO Capital Partners, FJ Labs, and Flight Deck Capital. This funding round highlights Clutch’s strong market position, continued growth, and commitment to reshaping the car buying and selling experience in Canada.

Achieving Growth and Profitability

Over the past three years, Clutch has expanded its operations significantly, experiencing a fourfold increase in annualized revenue to surpass CAD 400 million. In 2024, the company reached a crucial milestone by achieving profitability, reinforcing the viability of its business model. Despite having untouched proceeds from its previous financing, investor confidence and the company’s momentum led to an oversubscribed Series D round.

Strategic Investment for Expansion

Clutch plans to utilize the new funding to accelerate its geographic expansion, enhance vehicle reconditioning infrastructure, and increase inventory levels. The company aims to meet the growing demand from Canadian car buyers by building additional reconditioning facilities to ensure vehicles meet high-quality standards. This strategic investment supports Clutch’s long-term vision of providing a seamless and transparent car purchasing experience nationwide.

Commitment to Innovation and Customer Experience

Founded by Canadians and dedicated to serving local consumers, Clutch has disrupted the traditional dealership model with a technology-driven approach. The company generates over 140,000 unique instant offers per month and sources thousands of vehicles directly from customers, ensuring a transparent and stress-free experience. By leveraging rigorous reconditioning processes, Clutch maintains high-quality inventory and offers buyers a convenient way to purchase vehicles online.

A Strong Network of Investors

Altos Ventures, known for backing companies like Roblox, Coupang, and PandaDoc, led the Series D round and brings extensive expertise in scaling technology-driven businesses. The participation of Industry Ventures and BMO Capital Partners further strengthens Clutch’s financial backing, while existing investors Flight Deck Capital and FJ Labs reaffirm their commitment. This diverse network of investors provides not only capital but also valuable industry insights and connections to drive Clutch’s continued success.

Fostering a Growth-Oriented Culture

Clutch attributes its achievements to a dedicated team that embodies its core value of maintaining an underdog mentality. The company prioritizes continuous improvement, humility, and resilience, ensuring that it remains at the forefront of innovation in automotive retail. With this funding round, Clutch aims to expand its workforce and attract top talent to further refine its operations and customer experience.

With its latest funding, Clutch is poised for further expansion, reinforcing its commitment to transforming the car buying and selling experience in Canada. The company’s ability to adapt to market fluctuations and maintain financial stability underscores its strength as a leader in the industry. As Clutch continues to scale, its focus remains on delivering a customer-centric, transparent, and efficient platform for car buyers and sellers across the country.