They made a very bold statement as part of their pre-launch buzz saying they will “Revolutionize Online Shopping in Canada“, but now Shop.ca has to deliver on that promise. A big chunk of change from TorStar just might do that, today TorStar announced they have made a investment into the new startup which will give TorStar a 14% stake with a commitment to increase its interest to 30% over thirty months based on the company achieving certain performance milestones, in exchange for a total investment of up to $6 million in cash and up to $12.4 million in promotional support. Torstar’s promotional support to SHOP.CA will be provided through its many media properties within Metroland Media Group, Star Media Group and Torstar Digital. In addition to the investment, Metroland Media Group has entered into a strategic alliance with SHOP.CA focused on developing the merchant base engaged with selling goods through the SHOP.CA platform.
Overall its a very smart move for Shop.ca as it gives it a huge market channel and cash for a small percentage of the company, but will it be enough to take on Amazon who has been around for year, and still continue to innovate their offerings, or Future Shop who is the leader in Canadian electronics.
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