Shop.ca today announced it has raised $31 million in Series B funding. The Toronto-based online shopping destination is known for its daily sales events and free shipping and returns.
New investors in this round of funding include Shaw Ventures and “a select group of large North American financial institutions.” Existing investors, including Torstar Corporation, Slaight Communications, and Difference Capital also participated in this financing.
“We are extremely pleased with the response and support of our plans from new and existing shareholders,” said Drew Green, CEO of Shop.ca. “They share our enthusiasm for the opportunities that exist as Canadians convert to shopping online at Shop.ca at ever increasing rates,” Green continued.
This latest round brings the total cash raised by the Canadian company to date to $52 million in less than two years.
“This equity raise is a key building block to ensuring we capture the opportunity that exists in Canadian eCommerce,” said Michael Tait, founding partner of Shop.ca. “The fact that we were able to capitalize our company through a common share raise with this class of investors is strong validation of the exceptional nature of this opportunity and our entire team.”
Shop.ca says it will use the additional capital to continue to build out its proprietary technology stack, add to its merchant network, as well as “enrich its customer loyalty initiatives and execute on exciting partnership opportunities.” In, the company says it will ramp up digital marketing and marketing partnerships and hire additional employees to scale the business to profitability.
At the same time as the funding announcement, Shop.ca also revealed it has entered into a multi-year agreement with Aeroplan. This strategic alliance will enable Aeroplan Members to earn Aeroplan Miles on every purchase they make on Shop.ca.
“The team at Shop.ca has proven that they are here for the long-term and are the perfect partner for us to further strengthen our presence in an online marketplace space in Canada,” noted Kevin O’Brien, Chief Commercial Officer, Aeroplan.
“Aeroplan Members will be able to have one source for all their online shopping needs and will receive exclusive benefits few other programs can match,” added Green.