Borrowell has raised $12 million in Series A funding led by Portag3 Ventures LP, Equitable Bank and White Star Capital, with participation by FirstOntario Credit Union and other new and existing investors.
Borrowell has also secured $45 million in new credit facilities provided by Concentra and FirstOntario Credit Union for the purpose of funding ‘one click’ loans to prime consumers.
The closing of Series a bring total equity funding to $16.7 million.
In December 2014, Borrowell secured $5.4 million in seed funding and commitments from Equitable Bank, Oakwest Corporation Limited (a private investment company owned and managed by the Beutel family), Sharon Ranson, Roger Martin, John Bitove, Dan Debow, Joe Canavan, David Chilton, Adam Felesky, Stewart Lyons.
“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 Felesky, President of Portag3.
“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. “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. 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.
photo credit: Borrowell