Toronto is the heart of Canada’s startup ecosystem, especially in tech-driven e-commerce. These Toronto tech startups in 2025 are changing the way Canadians shop online, using AI, mobile apps, and innovative digital solutions. Whether you’re a budding entrepreneur or an investor, learning how to start an e-commerce business in Canada and studying the top-performing Toronto startups can give you actionable insights and inspiration.
Top 10 Toronto Tech Startups in E-Commerce
1. Swap (Toronto, Ontario)
10 Key Points:
- Founded in Toronto in 2018 to streamline e-commerce logistics using AI-driven technology.
- Specializes in predictive routing and delivery optimization for retailers.
- Partnered with multiple Canadian grocery and retail chains to reduce shipping costs.
- Raised $25M in Series A funding to scale operations across North America.
- Sustainability-focused, minimizing fuel usage and carbon emissions via AI planning.
- Integrates seamlessly with major e-commerce platforms like Shopify and WooCommerce.
- Recognized as one of Canada’s top logistics startups in 2023.
- Offers real-time shipment tracking for retailers and customers.
- Reduced average delivery times by 20% in Toronto’s urban centers.
- Plans expansion into U.S. markets using Toronto as its technology hub.
2. Knix (Toronto, Ontario)
10 Key Points:
- Founded in Toronto in 2013, focusing on inclusive and sustainable lingerie and loungewear.
- Direct-to-consumer brand using e-commerce as its primary sales channel.
- Uses AI analytics to predict demand and optimize inventory.
- Raised $53M in funding to expand North American and global operations.
- Features a subscription model for personalized shopping experiences.
- Recognized for empowering women and body inclusivity in online marketing.
- Collaborates with tech platforms for seamless e-commerce integration.
- Achieved a 300% increase in online sales during the pandemic.
- Operates a fully digital marketing strategy targeting urban Canadians.
- Plans to expand into Europe and Asia with Toronto as its logistics base.
3. Flashfood (Toronto, Ontario)
10 Key Points:
- Founded in 2016 to reduce food waste through e-commerce technology.
- Mobile app connects grocery stores with consumers for discounted items nearing expiry.
- Raised $12M in Series A funding to expand across Canada.
- Toronto-based technology team focuses on AI-driven inventory prediction.
- Partnerships with major chains like Loblaw and Metro.
- Environmental impact: helps prevent thousands of tons of food waste annually.
- Provides real-time pricing and notifications through the app.
- Offers analytics dashboards for grocery stores to optimize stock management.
- Recognized as a top Canadian social impact startup.
- Planning expansion into U.S. grocery markets within the next 2 years.
4. Mejuri (Toronto, Ontario)
10 Key Points:
- Founded in 2015, direct-to-consumer jewelry brand disrupting traditional retail.
- Focused on online-first strategy to reach a global audience.
- Raised over $50M in funding to scale operations internationally.
- Toronto-based operations support design, production, and e-commerce management.
- Uses influencer marketing and social media campaigns to drive sales.
- Subscription boxes and limited-edition drops boost recurring revenue.
- Integrates AI to predict trends and personalize product recommendations.
- Emphasizes sustainability with responsibly sourced materials.
- Awarded multiple e-commerce and design innovation accolades.
- Plans to expand in Europe and Asia using Toronto as its strategic hub.
5. Clearbanc (Toronto, Ontario)
Founders: Michele Romanow, Andrew D’Souza
- Founded in 2015 to provide revenue-based financing for e-commerce startups.
- Offers funding without equity dilution, empowering small businesses.
- Raised $215M in multiple funding rounds.
- AI algorithms assess risk and approve capital in minutes.
- Toronto headquarters manages global operations.
- Supports marketing campaigns by offering ad spend funding.
- Partnered with Shopify and other e-commerce platforms.
- Simplifies cash flow management for online businesses.
- Recognized as a top fintech and e-commerce growth enabler in Canada.
- Plans to scale internationally while maintaining Toronto as its tech hub.
6. Shopify (Toronto Impact Focus, Ontario)
Founders: Tobias Lütke, Scott Lake, Daniel Weinand
- Founded in 2006, headquartered in Ottawa with major tech operations in Toronto.
- Powers over a million online stores worldwide.
- Offers an easy-to-use e-commerce platform for small to large businesses.
- Toronto tech hub focuses on AI tools, app integrations, and marketing solutions.
- Raised over $500M in funding to innovate e-commerce technology.
- Continuously expanding logistics and fulfillment solutions for Canadian startups.
- Provides analytics and AI-driven recommendations for merchants.
- Offers a marketplace of apps and plugins for all e-commerce needs.
- Toronto office manages partnerships and enterprise-level solutions.
- Plans to integrate more AI-driven e-commerce solutions in 2025.
7. Ritual (Toronto, Ontario)
Founder: Ray Reddy
- Founded in 2014, mobile-first food ordering platform.
- Connects restaurants and consumers through seamless online ordering.
- Raised $40M in funding to expand across Canadian cities.
- Toronto HQ drives technology, AI-based analytics, and marketing operations.
- Offers pickup and delivery integration for urban professionals.
- Analytics dashboard helps restaurants forecast demand.
- Focused on B2B and B2C e-commerce solutions in the food sector.
- Recognized for revolutionizing contactless pickup during the pandemic.
- Integrates with payment and loyalty systems for better customer engagement.
- Plans U.S. expansion leveraging Toronto-based tech development.
8. Canada Goose (Toronto, Ontario – E-Commerce Expansion)
Founders: Sam Tick, David Reiss
- Founded in 1957, Toronto-based premium apparel brand expanding e-commerce in 2025.
- E-commerce strategy focuses on D2C international sales.
- Raised over $150M in digital transformation initiatives.
- Toronto tech teams manage AI-driven inventory and logistics systems.
- Offers personalized shopping experiences and virtual try-on features.
- Expanding online marketing to U.S., Europe, and Asia.
- Uses AI to optimize product recommendations and increase conversion rates.
- Integrates mobile apps for seamless online shopping.
- Recognized globally for premium outerwear and e-commerce innovation.
- Plans to expand Toronto-based e-commerce operations for next-gen AI shopping.
9. Tulip (Toronto, Ontario)
Founder: Rand Hindi
- Founded in 2017, focusing on mobile-first retail and e-commerce solutions.
- Uses AI to improve in-store and online customer engagement.
- Raised $30M to expand technology across Canadian retail chains.
- Toronto HQ develops apps and analytics dashboards for retailers.
- Integrates e-commerce with physical store operations.
- Supports personalized promotions and AI-based upselling.
- Recognized as a leading retail tech innovator in Canada.
- Works with enterprise clients to streamline omnichannel experiences.
- AI tools help forecast inventory and improve sales.
- Plans U.S. expansion while maintaining Toronto as tech hub.
10. Loopio (Toronto, Ontario)
Founders: Andrew Allison, David Wylie
- Founded in 2012 to automate RFPs and proposal processes for B2B companies.
- Toronto-based team develops AI-powered solutions for document and workflow automation.
- Raised $50M in Series B funding to scale globally.
- Serves clients in tech, finance, and professional services, improving response time.
- Offers integrations with e-commerce and CRM platforms for seamless workflow.
- Recognized for improving efficiency by over 60% in proposal creation.
- Provides analytics and reporting to track team productivity.
- Toronto HQ manages product development, customer success, and support.
- Focuses on AI-driven content reuse to reduce manual work.
- Plans to expand operations across North America and Europe using Toronto as the innovation hub.
Step-by-Step Guide: How to Start an E-Commerce Business in Canada
- Choose Your Niche: Focus on high-demand products or services that align with your skills.
- Register Your Business: Use the Government of Canada portal to register and get required permits.
- Build Your Online Store: Platforms like Shopify, WooCommerce, and BigCommerce are ideal for beginners.
- Set Up Payment Gateways: Integrate Stripe, PayPal, or Canadian payment solutions.
- Optimize for SEO: Include keywords like “e-commerce startups in Canada” and “Toronto tech startups.”
- Plan Logistics: Partner with reliable shipping providers for fast delivery.
- Marketing Strategy: Use social media, email campaigns, and influencer marketing.
- Analyze & Scale: Track KPIs, website traffic, and conversion rates regularly.
- Customer Experience: Implement AI chatbots, quick support, and easy returns.
- Stay Updated: Follow Canadian startup news and trends to innovate continuously.
Toronto’s tech and e-commerce startups in 2025 are shaping Canada’s digital future. From AI logistics to D2C fashion and smart retail solutions, these companies are redefining online shopping. If you’re looking to launch your own e-commerce business in Canada, studying these startups can provide insights into growth strategies, technology adoption, and market expansion.
Follow BestStartup.ca for more updates on Toronto tech startups, Canadian e-commerce innovations, and business insights!
