Toronto-based Clutch, an online used car marketplace, has secured $50 million CAD in Series D funding, bringing its valuation back near its 2021 peak of $575 million CAD.
The round was led by Altos Ventures, with participation from Industry Ventures, BMO Capital Partners, FJ Labs, Flight Deck Capital, and a group of angel investors.
Bouncing Back from Market Challenges
Clutch faced significant setbacks in 2022 and 2023, including:
- Two rounds of layoffs, cutting 87% of its workforce
- A failed $95 million Series C round, forcing it to settle for $20 million
- A 97% valuation drop, hitting a low of $15 million
However, the company has rebuilt momentum, reporting an 81% revenue increase in 2024, reaching $320 million and achieving profitability. This growth attracted investor interest, leading to Clutch’s largest funding round since its 2021 Series B.cy accounts, allowing users to receive payments, manage multi-currency wallets, and convert funds seamlessly.
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Expansion Plans with Fresh Capital
With this funding, the company aims to:
- Re-enter Western Canada, a market it exited due to layoffs
- Expand its vehicle reconditioning facilities beyond its 100,000 sq. ft. center in Mississauga
- Hire additional staff, after adding 70 new employees in January
Navigating Economic Uncertainty
Despite economic concerns, including potential trade tariffs, Clutch remains optimistic. CEO Dan Park emphasized:
“We’ve gone through our fair share of existential crises. This funding puts us back on stable ground, and we’re excited to start building again.”
With a revitalized valuation, a strong revenue trajectory, and strategic expansion plans, the startup is positioned to scale its online car sales platform and reclaim its leadership in Canada’s digital auto marketplace.
