After taking nine years to hit $1 billion, COO says Clutch is on pace to double it in one.
Toronto-based Clutch recently reached an important destination—surpassing $1 billion CAD worth of total vehicles purchased—and according to the online car retailer, it’s going to keep right on driving.
“It took us nine years to hit the first billion dollars, and it’ll take us less than 12 months to hit the second billion.”
Stephen Seibel, Clutch
Clutch co-founder and COO Stephen Seibel announced the news in a LinkedIn post yesterday. In an interview with BetaKit, Seibel acknowledged that it took Clutch nearly a decade—one that included numerous bumps in the road—to get to this $1-billion milestone, and claimed that Clutch’s current run rate of buying cars from Canadian consumers puts the scaleup on pace to double that number within the next year.
“It took nine years to hit the first billion dollars, and it’ll take us less than 12 months to hit the second billion,” Seibel said. “So, [I’m] very excited about the milestone but also just the general trajectory and how quick we’ll start to exceed it.”
Clutch buys used vehicles directly from Canadians before reconditioning and selling them for a profit through its managed marketplace. While Clutch has seen its share of challenges over the past few years, it has shifted into a new gear in the first half of 2025, growing 70 percent since January for its fastest-ever year-to-date growth.
Seibel and CEO Dan Park joined the BetaKit Podcast earlier this year to unpack the bumpy road Clutch has navigated—from the COVID-19 pandemic-fuelled acceleration of online car retail, to the end of cheap capital—how the company was able to regain traction, and how it plans to contend with United States tariffs.
Amid the downturn, Clutch underwent multiple rounds of layoffs to slow its growth and extend its runway amid a tough fundraising environment, including one set of staff cuts in 2023 after losing out on a potential $95-million Series C before ultimately settling for a $20-million round that slashed its valuation to $15 million.
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But after a strong 2024 that saw Clutch grow its revenue by 81 percent to $320 million and demonstrate profitability, the company recovered with a $50-million Series D round earlier this year, which valued it just over its previous peak of $575 million.
Clutch secured this capital to restart its stalled Western Canada expansion plans, hire staff, and build new reconditioning facilities across Canada. This year, the scaleup has opened a flagship 100,000-sq. ft. facility in Mississauga, Ont., just west of Toronto, and brought on Properly co-founder and former CEO Anshul Ruparell as CFO.
Seibel said Clutch’s record growth in 2025 has been fuelled in part by “very substantial” investments into how Clutch prices cars using machine learning. He said the company’s pricing is now “more accurate than it’s ever been,” and this has led to a higher rate of customers taking Clutch up on offers to buy used cars.
The COO noted that Clutch’s investments in advertising and marketing and its expansion to new markets, including Vancouver—where Clutch launched in March—have also played a role.
Feature image courtesy Clutch.