Lyra Growth Partners Inc. Boosts Stake in BuildDirect, Signaling Confidence in the Company's Future

Lyra Growth Partners Inc. (Lyra), a Vancouver-based venture capital firm, has filed an updated early warning report with the British Columbia Securities Commission, disclosing an increase in its ownership stake in BuildDirect.com Technologies Inc. (BuildDirect). The updated report, filed on January 31, 2025, reveals that Lyra has acquired an additional 2,682,514 common shares of BuildDirect from Kinderhook 2, L.P., bringing its total ownership to approximately 20.7% of the issued and outstanding common shares on a non-diluted basis (Newsfile Corp., 2025).

This acquisition is a significant development for both Lyra and BuildDirect, as it demonstrates Lyra's confidence in the company's long-term prospects and its commitment to supporting its growth. By increasing its stake in BuildDirect, Lyra is signaling to the market that it believes in the company's potential to overcome its current financial challenges and emerge as a strong player in the omnichannel building material retail sector.



BuildDirect, a leading omnichannel building material retailer, has faced financial challenges in recent years, as evidenced by its secured debt financings in 2022 and 2024 (CNW, 2022, 2024). Despite these challenges, Lyra's decision to increase its stake in the company suggests that it sees opportunities for growth and value creation in the long term. By working closely with BuildDirect's management team, Lyra can help the company navigate its current challenges and position itself for future success.



Lyra's investment in BuildDirect aligns with its focus on the consumer goods sector, particularly in the internet retail industry. By supporting BuildDirect's growth and helping it overcome its financial challenges, Lyra can capitalize on the growing demand for online retail services in the building materials industry. Additionally, Lyra's investment in BuildDirect may provide synergies with its other portfolio companies, such as those in the lifestyle and beauty sectors, by offering them access to quality building materials and services for their own projects or product offerings.

In conclusion, Lyra Growth Partners Inc.'s increased stake in BuildDirect.com Technologies Inc. demonstrates its confidence in the company's long-term prospects and its commitment to supporting its growth. By working closely with BuildDirect's management team, Lyra can help the company navigate its current financial challenges and position itself for future success. This investment aligns with Lyra's focus on the consumer goods sector and may provide synergies with its other portfolio companies. As Lyra continues to support BuildDirect's growth, investors should monitor the company's progress and consider the potential opportunities and risks associated with its increased exposure to BuildDirect.