Canadian Fintech: Financeit Finances It 🫰
New products from Wealthsimple, Koho & Loop. Dye & Durham on the block?
Good morning! Welcome back to Canadian Fintech, a newsletter for founders, operators & investors.
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💰 Funding
Financeit, Canada’s largest home improvement lender increased their securitization warehouse with Goldman Sachs by $200m to $700m.
Goldman Sachs became the majority owner of Financeit in 2017 before selling the company to Intervest in 2022.
Mave, a Toronto based AI assistant for real estate agents & brokers, raised $2m led by N49P and Relay Ventures.
Boardy, a professional networking startup with a voice interface, raised $4m.
Part of the founding team also founded Clearco, the businesses financing company.
Parachute, a subprime consumer lender, raised $1.5m from Adrenaline Fund and Highline Beta.
Myfo, a Vancouver based back office platform for family offices, raised $4.8m led by Rhino Ventures.
🤝 M&A
Thomson Reuters, the Toronto headquartered media conglomerate acquired Materia, an AI assistant for auditors and accountants.
Mindbridge, an Ottawa based competitor signed a global partnership with KPMG last year.
Dye & Durham, a Toronto based company best known for its corporate registry business is exploring a sale amidst pressure from activist investor Engine Capital to replace its leadership team.
The company went public in 2020 and made a spree of acquisitions, including a payments business they purchased from Telus, which they are now trying to offload.
Desjardins is reportedly on the lookout to acquire Canadian brokerages in the P&C insurance industry.
The Caisse Populaire sold its stake in Fiera Capital earlier this year and picked up The Insurance Company of PEI and assets from Guardian Capital Group.
A MESSAGE FROM THE BANK OF CANADA
The Retail Payment Activities Act (RPAA) is coming into force
Get ready to submit your registration application November 1-15 to continue providing payment services in Canada.
Under the RPAA, the Bank of Canada is responsible for supervising payment service providers to build confidence in the safety and reliability of their services while protecting end users from specific risks.
Find out if you are a payment service provider subject to the RPAA, if you should apply to register with the Bank of Canada, and what the requirements are to prepare for registration.
🚀 Product
Wealthsimple and Koho both launched partnerships with e-sim providers. E-sims are digital sim cards that travellers outside of Canada can affordably roam with.
International neobanks like Revolut and Nubank popularized this embedded product in other markets.
Loop, a digital bank for Canadian businesses operating in multiple currencies, launched a Canadian business operating account.
Operating accounts differ from the more commonly used currency accounts. They allow for all forms of incoming and outgoing domestic payments including things like pre-authorized debits & bill payments.
Lendz.ai, a borrower retention platform for Canadian mortgage lenders launched.
The startup founders previously founded Delta 360, which was acquired by CMLS in 2016 and rebranded to Intellifi.
Central 1 is winding down their digital banking product.
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Have a great week! See ya 👋