Canadian Fintech: Wealthsimple Revalued ⚖️

Good morning! Welcome back to the Canadian Fintech Newsletter, an industry roundup for founders, operators and investors that takes 3 minutes to read.

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💰 Funding

• Stack Capital, a Toronto based publicly traded fund that buys late stage, pre-IPO tech company stock, raised $35m.

• First Nations Bank of Canada, is raising $50m in equity from prominent indigenous groups.

  • FNBC is the only federally chartered bank independently controlled by indigenous shareholders.

  • The bank is aiming to boost its loan capacity to $400m to fund indigenous business lending.

• Power Corp, the Montreal based financial services investor has marked up their 54% stake in Wealthsimple by 21%.

🤝 M&A

• Rail, a Toronto based b2b stablecoin payments platform is being acquired by Ripple, a US based blockchain company best known for the cryptocurrency XRP for USD $200m.

  • Rail claims that it processes 10% of all stablecoin transactions.

• Manulife is acquiring Comvest Credit Partners, a US based private credit fund for just under $1b.

  • Combined this brings Manulife’s credit business up to $18.4b.

• Kuvi.ai, a Toronto based platform for investors to design their own AI agents acquired Altura, a platform for video game developers to integrate digital assets (currency, NFTs, etc.)

  • Kuvi recently raised $700k at a $30m valuation led by Moon Pursuit Capital.

• Mogo, a Vancouver based trading platform, sold half of its stake in WonderFi ahead of WonderFi’s sale to Robinhood. The profits were in part used to purchase bitcoin.

• Descartes, a Waterloo based logistics tech company (customs compliance, fulfillment, etc.) acquired Finale Inventory, a US based inventory management system for USD $55m.

🚀 Product

• Fiscal.ai, a Toronto based investment research platform partnered with Alpaca, a brokerage API.

  • Both fintechs share Portage as an investor.

• Propel Holdings, a Toronto based consumer lender, crossed $50m in monthly revenue.

• Air Canada will start awarding Aeroplan loyal points based on money spent, not miles travelled. This aligns with other airlines like Delta and American.

• TeamLinkt, a Saskatoon based vertical software to run amateur sports leagues (scheduling, payments, etc.) raised $8.3 million from US based Growth Street Partners.

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Have a great week! See ya 👋

-Tal Schwartz