Canadian Fintech: New Bank Alert 🚨
PureFacts acquired. Wisedocs raises cash for the second time this year.
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💰 Funding
Wisedocs, a tool for insurers to process medical claims faster with automated document analysis, raised $4.5m in debt from CIBC Innovation.
The company raised $12m in equity earlier this year.
Tracktile, a PEI based software company that allows manufacturers to manage inventory, plan production, and analyse real-time operations data raised $575k, led by BDC.
Arcadea Group, Toronto based software PE group raised $336m. The company was founded by two ex-Constellation directors.
🤝 M&A
PureFacts, a fee calculation & billing platform for financial advisors received a majority investment from growth equity shop, GrowthCurve Capital.
This type of product is often called revenue management and variations of it are used across financial services, wherever incentives or fees need to be calculated & managed.
Other examples are Zafin & Nomis (for lending & deposits) and Earnix (for insurance).
🚀 Product
Santander, Spain’s largest bank is one step closer to opening up shop in Canada.
In 2014 Santander entered the market by acquiring Carfinco, an auto lender for $300m.
In 2019 they began the process of applying for a Canadian charter.
This summer they received letters patent of incorporation for Finance Canada and now have up to one year to receive an order from OSFI to begin operating as a bank.
If approved, I think it’s likely that Santander will expand its digital brand Openbank here. They announced expansion of it into the US and Mexico earlier this year.
Why? A digital bank gives them a cheap source of deposits to fund their lending, without having to build up a branch presence in the country.
Aquanow, a Vancouver based crypto infra company that facilitates payments, trading, and custody received broker-dealer approval in Dubai, 5 months after a conditional licence.
Outlit, an Ottawa based tool for sales teams to review legal contracts launched.
Vopay, a Vancouver based payment gateway partnered with Sage, a UK based ERP system to power their payroll / direct deposit features for Canadian clients.
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Have a great week! See ya 👋