Canadian Fintech: Vancouver Bank Infra 💸

Good 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

• FISPAN, a Vancouver based embedded banking infrastructure, raised USD $30m led by Canapi Ventures.

  • FISPAN allows ERPs (NetSuite, Oracle, etc) to offer banking features like vendor payments, employee reimbursements, and view bank balances.

  • The fintech is profitable and doing $25m in ARR.

  • The company’s founder Lisa Shields, previously founded and sold Hyperwallet to PayPal for USD $400m in 2018.

• Portless, a Toronto based supply chain logistics firm raised USD $18m led by Commerce Ventures.

  • The company operates a warehouse in China and ships individual small items directly to consumers. This model was popularized by Shein and Temu.

• Rails, a Canadian founded crypto exchange that allows for self custody, raised USD $14m led by Slow Ventures.

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🤝 M&A

• SCM, an Edmonton based investigator of insurance claims, sold off Xpera, an investigator of employee misconduct to Weathervane, a private equity firm.

• AppDirect, a Canadian founded white-label tool for launching marketplaces and referral programs acquired BOX, a platform for retail energy brokers for USD $85m.

  • This allows AppDirect to offer energy procurement to its marketplace amid a boom in AI driven data consumption.

🚀 Product

• Nesto launched commercial mortgages in Quebec via CMLS, a company it acquired last year

• Gigamatic, a dashboard for gig workers to view their payroll, banking and insurance launched.

• TD is doubling their “transfer out” fees for registered accounts from $75 to $150, putting them in line with several other banks.

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Have a great week! See ya 👋

-Tal Schwartz