Canada-based digital auto retailer Clutch has raised CAD10 million ($7.3 million U.S.) in a funding round as part of a broader collaboration with insurance and wealth management company iA Financial Group.

“This partnership will enhance our platform by integrating iA’s best-in-class warranty and insurance products, making it easier and more transparent than ever for Canadians to purchase vehicles in one seamless transaction,” Clutch wrote in a LinkedIn post.

Founded in 2017, Clutch buys, sells and trades used cars, as well as offering car subscriptions. It sold more than 8,000 secondhand vehicles in 2023, according to a news release from iA Financial Group.

“Clutch was founded to offer Canadians a seamless and transparent car buying experience, ensuring complete peace of mind,” said Clutch CEO Dan Park.

“We are thrilled to partner with iA Financial Group to further elevate our user experience and provide best-in-class warranty and insurance products to our customers.”

iA Financial Group EVP and chief growth officer Canadian Operations Pierre Miron said the collaboration would add online sales as a product distribution channel to its auto dealer services: “As a result, we are well positioned to serve consumers in their preferred way when they purchase vehicles and insurance products.”

Clutch has raised a total of more than $370 million U.S. across eight funding rounds, according to Crunchbase.

iA Financial Group’s investment in Clutch follows Collateral Management Solutions’ acquisition of Trader Corporation — which operates automotive marketplace — earlier this month.

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