Canadian Fintech: Teal Gets an Early Exit 💰
Vault launches AP tools. Nova Credit is on a tear. Lithic comes to Canada.
Good morning! Welcome back to Canadian Fintech, a newsletter for founders, operators & investors.
I’m back from a lovely honeymoon in Mexico! Thanks for all of your recommendations. If you’re planning a trip to Oaxaca, let me know and I’ll return the favour 😊.
Last week I was back to back in Montreal for the Fintech Forum and then Toronto for the Sustainable Finance Summit. I’ll be sharing my takeaways on both conferences this week.
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💰 Funding
Flow Capital, a venture debt lender, raised a $20m credit facility.
Kahi, a device used by insurance companies and contractors to track the maintenance needs on property and commercial equipment, raised $2.3m led by BDC.
Hyon and Metronome are also Canadian fintechs in this market.
Luge, a Canadian VC fund raised $96m for early stage fintech.
🤝 M&A
Teal, a Vancouver based embedded accounting platform was acquired by US business banking fintech Mercury.
This is a bit of a surprising early acquisition. Teal raised $11m in Seed funding three months ago.
Givex, a TSX listed payment company for gift cards, POS, and ticketing was acquired by Shift4, a US payments company for $200m.
BC based credit unions, Beem Credit Union & BlueShore Financial are merging.
This is the fourth major CU merger this year.
Valsoft, a Montreal based private equity firm acquired Acom Solutions, a US based AP automation platform.
A MESSAGE FROM GOWLING WLG
Fintechs must prepare for the next wave of regulation
Secure your spot for the next installment of FSxT Connect: Regulatory Pulse, a unique series exploring the fascinating interplay between financial services and technology from a Canadian regulatory perspective.
Hear from leaders at the vanguard of this evolving landscape, including:
Leslie Byberg: Executive Vice President at Ontario Securities Commission
Ron Morrow: Executive Director at the Bank of Canada
Donna Kinoshita: Chief Payments Officer at Payments Canada
Register for this webinar to stay ahead of the curve.
🚀 Product
Vault, a business banking fintech launched AP automation features.
There is a huge venn diagram forming in business fintech. Platforms like Vault, Wave and Float are bolting on features like AP, payroll, deposits, FX, etc. to create all in one SMB banking platforms.
Nova Credit, a cross-border credit bureau partnered with Rogers Bank to help underwrite new-Canadians for phone plans.
Nova Credit has been killing it with Canadian FIs. In the last year they’ve signed on Scotia, BMO & RBC.
Roblox, your kid’s favourite video game, partnered with Shopify to sell physical merchandise in-game.
Group Enroll, a group benefits brokerage, has partnered with insurer GreenShield.
Bōde, a discount real estate brokerage, crossed $1b in property sales.
Beacon, an app to help settle new Canadians pre-arrival launched a remittance tool. The fintech raised $5m earlier this year.
TD was fined $28m USD by US regulators for misreporting client data to credit bureaus.
The US branch of the bank is also in the midst of a money laundering scandal, which has been a drag on earnings.
TD also partnered with BigCommerce, a US Shopify competitor to launch e-com tools (manage inventory, process online payments, etc.) for their US SMB banking clients.
Canadian Western Bank shareholders have approved its acquisition by National Bank.
🇨🇦 Entering Canada
Transact365, a UK based payments company, expanded into Canada.
Paystand, a blockchain-enabled payments company fully launched in Canada.
Lithic, a US-based card issuer has officially come to Canada.
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Have a great week! See ya 👋