Canadian Fintech: Intact Buys Jiffy 🔨
Canada Post gets back into banking. Neo raises Series D. Trolley raises Series B.
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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💰 Funding
Neo Financial, a Calgary based digital bank raised $360m in debt and equity. The Canadian founders of Shopify, Slack, and PointClickCare participated in the round.
Trolley, a Montreal based payment company focused on compliant business payouts raised $32m led by Wavecrest Growth Partners.
runQL, a Waterloo based devops tool for data scientists to more easily query databases, raised $1.6m from Mistral Venture Partners, MaRS IAF, Inovia, and Velocity Fund.
Wealthsimple’s valuation is now higher than it was in 2021 according to Power Corp, the Montreal based financial services investor that owns 55% of it.
Power Corp valued Wealthsimple at $2.1b in 2021 then $1.1b in 2023 and now $2.2b.
Klarna, a Swedish Buy Now Pay Later with operations in Canada is gearing up for an IPO.
🤝 M&A
Intact, one of Canada’s largest insurers acquired Jiffy, the handyman marketplace.
Intact specializes in property & casualty policies. This deal will enable them to bundle its products via Jiffy.
This is Intact’s first acquisition of a VC backed business.
Nuvei, a Montreal based payments company received approval for its take-private deal under Advent.
The fintech also recently acquired European payments company Payout.
🚀 Product
Canada Post is launching a chequing & savings account via KOHO.
KOHO users can already deposit cash at Canada Post locations via a partnership with PaymentSource.
This is Canada Post’s second attempt at financial services. They briefly offered personal loans via TD in 2021 before axing the partnership within weeks.
Africhange, an Edmonton based remittance platform was granted an international money transfer licence from the Central Bank of Nigeria.
TouchBistro, a restaurant POS launched an integration with TD.
Competitor POS system Moneris, is partially owned by RBC & BMO.
Deep Sky, a Montreal based carbon removal company sold 10,000 tonnes of credits to Microsoft & RBC.
SnapTrade, a Fredericton based API connecting retail brokerages partnered with 11thEstate, a platform that helps traders recover settlements from securities class action lawsuits.
⚖️ Policy
A Federal Court ruled that Loblaw can claim tax credits on credit card loyalty point redemptions.
Loblaw’s financial services arm, which includes PC Bank, contributed $382m in the third quarter. This ruling alone raked in $125m.
Loblaw retrenched from consumer banking partnership with CIBC in 2017 and then relaunched on their own in 2020.
The majority of Canadian banks and pension funds did not attend COP29, the UN’s climate conference.
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Have a great week! See ya 👋