Looking To Amazon, BuildDirect Raises $30M To Take On Home Improvement Giants - Forbes
While Home Depot, Lowe's and Menards battle it out to be the preferred destination for home improvement shoppers in the United States, a challenger in Canada has taken on some serious cash to take that spending online. BuildDirect announced today it raised $30 million CAD, or about $27 million in U.S. dollars, in a Series B round to amp up the pressure on the brick-and-mortar establishment.
There’s a Canadian flavor to the whole deal, with the fourteen-year-old company still based out of Vancouver and Mohr Davidow Ventures leading through the round through Canadian partner Katherine Barr. Existing investor from north of the border BDC Venture Capital also re-upped in the round, which despite the company’s relatively long private life is just its second institutional raise.
BuildDirect doesn’t have the name recognition of those big-box stores you’re used to checking out for paint, planks or whatever else you need for home improvement, but the company takes in more than $100 million in sales by working directly with more than 130 manufacturers. Because it ships directly to its warehouses and then the construction site, the company’s orders are much larger than what you’d see on average at a Home Depot: $2,000 orders each, often for hundreds or thousands of pounds of freight.