Canadian Fintech: Industry Takes Flight 🛫
FX risk for SMBs. Renting your spare bedroom. Bitcoin collateralized loans.
Morning!
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💰 Funding
Finofo raised $1.6m to help SMBs operating in multiple currencies manage FX risk. Users can open multi currency accounts, convert between them, send / receive international payments.
My take: pound for pound this is a similar offering to other SMB banking fintechs like Loop & Vault. Where Finofo could gain an edge is by leaning into more complex FX risk management transactions like currency hedging. These services are dominated by traditional brokers, which are relationship driven and carry high fees.
With the avg Canadian rent crossing $2k, platforms to rent out spare bedrooms have become popular:
ResolveMD, a medical billing platform for physicians closed $2m in debt. Last year, RBCx acquired competitor MDBilling.ca.
🤝 M&A
Deltek, a global ERP system acquired Calgary based Replicon, a workforce time tracking platform. Why? Both companies focus on project based employers (gov contractors, construction contractors, etc). Expect Deltek to cross sell the hell out of Replicon clients not using their ERP system.
👀 Looking for your next Canadian fintech gig?
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Join one of Canada’s fastest growing fintechs and help build a platform loved by thousands of Canadian businesses. Current open roles include Engineering Lead, Senior PM, Senior Growth Marketing Manager, RevOps Manager and Customer Implementation Manager.
Float is simplifying spend so companies and teams can focus on growing their business. Our team and investors bring experience from leading software companies including Shopify, Uber, DoorDash and more.
🚀 Product
APX Lending recently launched to provide bitcoin collateralized loans. The founding team comes from Coinberry, a crypto exchange sold to WonderFi last year for $38m.
Canadian fintech is taking flight… 🛫
Coinbase and Kraken, two international crypto exchanges quietly operating in Canada for years to the chagrin of local regulated entities, “officially” launched. Back in March, both companies signed commitments to abide by Canadian regulations while pursuing their licences.
🎂 Number time!
$113b - the amount of money laundered in Canada each year
2% - RBC’s planned job cuts. The bank hired ~10% the year before.
$353m USD - total Canadian fintech funding in the first half of this year. That’s a 67% drop from the period before (see graph).
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Have a great week! See ya 👋