Vancouver-based tech company BuildDirect Technologies announced last week that it has raised a $50 million Series C round through BMO Capital Markets, OMERS Ventures, Mohr Davidow Ventures, and other investors.
BuildDirect operates a marketplace for home improvement buyers (consumers and subcontractors) and sellers (manufacturers, designers, trades and shippers). The company will use the investment to rapidly expand and scale its marketplace technology, notably by expanding its product offerings, by making it easier for vendors to sign up, and by hiring 50 new employees.
This is BuildDirect’s fifth round since its founding in 2009, bringing its total funding to $112 million ($80M of which was raised this year). According to the Financial Post, the company’s valuation is approaching $500 million, with annual revenues between $100 million and $150 million.
This $50 million round is one of the largest Canadian VC rounds closed in 2014, surpassed only by Slack’s $120 million round in October, Desire2Learn’s $85 million round in August, and Hootsuite’s $60 million round in September.
“This financing underscores the speed at which old-world industries are breaking down and platform companies that leverage cutting-edge technology and data analytics, like BuildDirect, are putting the power in the hands of both the supply and demand side,” said Katherine Barr, General Partner, Mohr Davidow Ventures. “Home improvement is a half-trillion dollar industry and is severely fragmented and inefficient. BuildDirect is disrupting the existing supply chain in this industry and building a completely new, highly efficient and smart system that suppliers and consumers alike will benefit from tremendously in terms of manufacturing and distribution efficiencies for suppliers, and lower cost for high quality products and a much improved user experience for consumers.”
Canada’s industries are increasingly moving from old-word fragmented approaches to doing business to the adoption of new technology platforms that simplify transactions within a common online marketplace. While BuildDirect is leading the charge in the home improvement market, The Funding Portal is leading the way in Canada’s government funding and capital markets. The portal is Canada’s only Exempt Market Dealer (EMD) portal able to assist companies into both government incentives and capital and financing markets. Learn how your business can now use the portal to efficiently close transactions within capital markets or join the portal’s MyFundCard network to qualify for matches with other network members, including issuers, dealers and investors.