Clutch plans to become the largest owner of quality pre-owned vehicles in the country
TORONTO, May 10, 2022 – Canada’s first and fastest-growing online car retailer, Clutch, announced today that it has raised $150 million in debt funding from funds managed by Neuberger Berman to further fuel its national expansion and strengthen operations in its existing markets.
The loan will be used to grow Clutch’s inventory of quality pre-owned vehicles in existing markets while also supporting its continued expansions. The funding comes just months after Clutch closed a $100 million Series B funding round, led by D1 Capital Partners, which has allowed the retailer to grow its team of talent as it continues to execute on its vision.
“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 per cent of Canadians by the end of 2023,” says 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.”
Despite the ongoing used car shortage, Clutch has been successful in building its inventory in order to meet the varying needs of Canadian consumers. At the end of the first quarter of 2020, Clutch had just 89 cars in its inventory, but today, the company has thousands of certified pre-owned vehicles listed for sale on its website.
“We see the strong product market fit for Clutch and are impressed by the company’s long-term strategy to bring its best-in-class ecommerce experience to Canadians with its customer-first approach,” says Jay Berger, Senior Vice President of Neuberger Berman. “We believe Clutch is fundamentally changing the way that people buy and sell cars and we are excited to support them as they continue defining this new category of retail in Canada.”
By visiting Clutch.ca, customers can browse a large selection of Clutch-certified high-quality vehicles at competitive prices and access a fully-digital purchasing experience which includes financing, insurance, and seamless home delivery. Clutch ensures peace-of-mind with each car being backed with a standard 10-day money-back guarantee upon delivery.
Currently, Clutch services Alberta, British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. To learn more visit Clutch.ca.
Clutch, founded in 2016, is a vertically-integrated online car retailer for pre-owned vehicles in Canada. Clutch aims to provide an incredible car buying experience for its customers by bringing a best-in-class ecommerce experience to the Canadian pre-owned car industry. By visiting Clutch.ca, customers can browse a large selection of high-quality vehicles at low prices and access an end-to-end online purchase experience which includes financing, insurance, and seamless home delivery. Clutch ensures complete peace-of-mind with each car being backed with a standard 10-day, 750 km money-back guarantee. Headquartered in Toronto, Clutch services Alberta, British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. Clutch is backed by a number of world-class investors including Canaan, BrandProject, Real Ventures, D1 Capital, Upper90, FJ Labs, Global Founders Capital and Azure Capital Partners. Learn more at Clutch.ca.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,500 professionals. For eight consecutive years, the company has been named first or second in the Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $447 billion in client assets as of March 31, 2022. For more information concerning PRI and Leaders Group awards, please visit our website at www.nb.com.