TORONTO, July 21, 2017 (GLOBE NEWSWIRE) -- Financial technology company Borrowell announced today it has secured $12 million (CAD) in equity funding and $45 million in new credit facilities. The Series A equity round is being led by Portag3 Ventures LP, Equitable Bank and White Star Capital, with participation by FirstOntario Credit Union and other new and existing investors, and brings the company’s total equity financing to $16.7 million. The credit facilities are being provided by Concentra and FirstOntario Credit Union for the purpose of funding ‘one click’ loans to prime consumers. This latest round of funding will allow Borrowell to provide free credit information and loans to more people.
With consumer debt at record levels, Borrowell has found significant demand for its products, which empower customers to improve their financial well-being. More than 300,000 Canadians have a Borrowell account, with thousands more signing up each week.
"In just over two years since our launch, we've experienced tremendous growth, centered around our mission of helping consumers make great decisions about credit," said Andrew Graham, co-founder and CEO of Borrowell. "Over three hundred thousand Canadians have used Borrowell to learn their credit score or check their rate on a loan. This doesn’t include the many more we’ve served through our partnership with CIBC.”
“Fintech companies like Borrowell are essential to improving the well-being of Canadians. With its groundbreaking technology, Borrowell is providing customers with access to products and services that otherwise would not be available to them,” said Adam Felesky, president of Portag3 Ventures.
“We’re very happy with the progress Borrowell has made in such a short period of time,” added Andrew Moor, president and CEO of Equitable Bank. Equitable Bank is one of Borrowell’s original investors. “They’ve demonstrated a strong ability to execute and forge strategic partnerships.”
“We’re excited about Borrowell’s ability to use data to generate deep consumer insights,” said Jean-François Marcoux, managing partner of White Star Capital. “We look forward to using our global network and resources to help Borrowell scale more quickly, both in Canada and abroad.”
Dave Schurman, FirstOntario’s divisional CEO of corporate investments, said, “We are pleased to establish a funding partnership with Borrowell, both as an equity investor and by providing capital for making consumer loans across Canada that are fast, easy, and a cheaper alternative for consumers than carrying a balance on a higher priced credit card.”
Ryan Graham, executive vice president of Wholesale Banking with Concentra added, “Building on our expertise as a funder of alternative consumer assets, we’ve tapped into the growth and innovation happening in the fintech industry. This investment helps drive Concentra’s business strategy with credit unions, and strengthens our consumer lending portfolio, enabling Concentra to deliver a wider range of investment options.”
The funds will be used to drive Borrowell's mission of financial empowerment. The company started by offering smart borrowing solutions to manage consumer debt and has since expanded to help Canadians through free credit score monitoring and financial recommendations. Borrowell is making significant investments in data science and artificial intelligence to better predict and build the financial tools and products that consumers will need to improve their financial well-being.
About Borrowell
Borrowell helps consumers make great choices about their credit. With its free credit score monitoring, personal loans and product recommendations, Borrowell empowers Canadians to improve their financial well-being and be the hero of their credit. Borrowell was named by LendIt as one of six emerging companies globally "that has demonstrated the greatest potential to impact the future of consumer lending," and was shortlisted as a top "disruptor" in PwC's 2017 Vision to Reality awards. For more information, visit www.borrowell.com
About Portag3 Ventures
Portag3 Ventures is an early-stage investor dedicated to backing innovating financial services companies working to benefit all consumers. Exclusively sponsored by Power Financial Corporation, IGM Financial Inc. and Great West-Lifeco Inc., Portag3 gives new ideas a unique environment to grow. Portag3 makes longer-term commitments, and combined with its industry intelligence is an ideal partner for the ambitious and creative entrepreneur. For more information, visit www.p3vc.com
About Equitable Bank
Equitable Bank is Canada's ninth largest independent Schedule I bank and offers a diverse suite of residential lending, commercial lending and savings solutions to Canadians. Through its proven branchless approach and customer service focus, Equitable Bank has grown to almost $23 billion of Assets Under Management. Equitable Bank also recently launched EQ Bank, a mobile-first digital bank, with the EQ Bank Savings Plus Account as its flagship product. Equitable Bank employs nearly 600 dedicated professionals across the country, and is a 2017 recipient of Canada's Best Employer Platinum Award, the highest bestowed by AON. For more information, visit www.equitablebank.ca
About White Star Capital
White Star Capital is an early-stage Venture Capital firm investing in exceptional entrepreneurs who are building the iconic companies of tomorrow. With offices in London, New York and Montreal and a team with deep operational expertise, we partner closely with the teams we back to help them scale globally. For more information, visit www.whitestarvc.com
About Concentra
Concentra is the wholesale bank and trust company for Canada's credit unions. We bring national connections to local credit unions, helping to serve nearly 6 million members across Canada. Concentra specializes in lending and investment solutions for credit unions to improve performance, manage risk, and grow member relationships. For more information, visit www.concentra.ca
About FirstOntario Credit Union
FirstOntario has been serving Members in the Golden Horseshoe, including Hamilton, Halton, the Niagara Region and Southwestern regions of Ontario since 1939. FirstOntario is the province’s second largest credit union with more than 115,000 Members and $4.7 billion in assets under management. Everyone is welcome to be part of FirstOntario for financial services including daily transactions, mortgages, lines of credit, loans and investments. FirstOntario profits are invested into the communities we serve through support for entrepreneurs, competitive rates and charitable pursuits including our award-winning student nutrition program. Learn more about us today at FirstOntario.com