Online auto parts retailer PartsAvatar receives growth financing from BDC Capital

February 4, 2020, Vancouver—PartsAvatar, an online retailer of replacement auto parts, recently received non-dilutive mezzanine financing from BDC Capital’s Growth & Transition Capital division. Since its foundation in 2014, the Surrey, B.C.-based online retailer has made a name for itself selling a wide variety of auto parts to do-it-yourself home mechanics. It is now looking to breach the professional market as independent automobile repair shops are gradually being taken over by a new generation of owners that is more inclined to place orders online. BDC Capital’s financing comes in support of these market penetration efforts.

B2B transactions are estimated to make up 63% of the replacement auto parts market. To succeed in this segment, PartsAvatar has devised a strategy which consists in speeding up fulfillment times—up to same-day delivery in some major centres; making the supply chain fully transparent, from product availability to delivery status; and automatically displaying customized pricing to commercial clients.

As part of this strategy, the funds provided by BDC Capital are being used by PartsAvatar to open new fulfillment centres in Calgary, Montréal, the Greater Toronto Area and the Prairies, and to upgrade the architecture of its online store. This financing takes the form of a four-year patient mezzanine investment with a flexible repayment schedule, designed to give the company sufficient runway to benefit from its investments.

“BDC Capital’s financing allows us to execute on our expansion plans sooner than what we had initially thought possible, enabling us to take advantage more quickly of the opportunity we have identified in the marketplace,” says Sherdeep Singh, CEO of PartsAvatar.

This financing was arranged by Nicholas Drake, Director, Growth & Transition Capital in British Columbia at BDC Capital. “PartsAvatar’s management team has drawn on their deep industry, supply chain and programming expertise to make buying auto parts more comfortable, more convenient and more affordable. We are excited to support this team as it expands its offering across Canada,” comments Drake.

About PartsAvatar

PartsAvatar is a Canadian autotech company with a mission to make the world happier by simplifying auto repair. We are leading the Right to Repair movement by bringing great prices, fast shipping and awesome customer service to the auto parts industry. We operate from offices in Surrey, Montreal, Toronto, New Delhi and Bengaluru and fulfillment centres in Edmonton and Brampton, with more opening soon. Visit PartsAvatar.ca.

About BDC Capital

BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.

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