Canadian Fintech: Wealthsimple at $5b 🤑

Nov 25, 2024

Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors.

Every Monday we break down the hottest topics in the industry in under 3 minutes.

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Noble, a Toronto based platform for stablecoin issuers raised $21m.
Lightstrike, a Calgary based devops tool that maps how a company’s apps are integrated raised $1.1m led by Sprout Fund.
BDC is looking to provide financing to 80 community-based small business lending groups.
- The crown corp aleady provides loan guarantees, indirect lending and co-lending to lenders like Futurepreneur & the Federation of African Canadian Economics.

XTM, a Toronto based earned-wage-access service partnered with KOHO.
- XTM allows hospitality workers to get early access to their tips via a mobile banking app and prepaid card. Now KOHO will replace both the app and card.
- Kinda a full circle moment here because KOHO used to also be in the earned-wage-access game themselves.
- In 2014 KOHO launched and later killed their first small dollar credit product called “Instant Pay” that allowed employees at certain companies to access a portion of their weekly salary.

In other earned-wage-access news… Payfare, a Toronto based provider focused on gig workers launched their product on the ADP Marketplace, a massive payroll provider.
- Payfare’s largest client, DoorDash, recently announced that it would not renew its contract, which has rocked their stock price.
Safe, a Hamilton based personal finance app launched.
League Savings and Mortgage, a Halifax based FI that services east coast credit unions partnered with LoanStreet, a NY based loan servicing and syndication platform.
Beacon launched a wallet that can be funded & used by newcomers to Canada pre-arrival.
Kraken, an international crypto exchange, hit $2b in Canadian client assets.
- Driving the growth is bitcoin’s recent tear towards $100k.
Iconiq Capital, a SF based investor bought $100m of Wealthsimple stock on the secondary market valuing the Toronto fintech at $5b.
Foxquilt, a Toronto based embedded small business insurer, expanded into New York.
- They raised $12m in 2023.

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Have a great week! See ya 👋