Additional funds will accelerate growth of Borrowell’s 1.5+ million member base and development of new products and services for consumers looking to achieve their financial goals
Borrowell, Canada’s leading credit education company and one of its largest financial technology (fintech) companies, today announced it has completed the acquisition of Refresh Financial, a leader in providing underserved Canadians with long-term access to affordable and sustainable credit, and raised $25 million in funding for the acquisition and to support future growth. The acquisition doubles Borrowell’s revenue and employee base.
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The $25 million funding round includes new investors Kensington Capital Partners, BDC Capital, iA Financial Group and Impact Engine, a Chicago-based social impact-focused investment fund. Existing investors Portag3 Ventures, White Star Capital, National Bank of Canada’s NAventures and Equitable Bank also participated with new funding.
“This acquisition and fundraise allow us to double-down on our strategy of helping consumers achieve their financial goals,” said Andrew Graham, co-founder and CEO of Borrowell. “With an expanded team across the country and a comprehensive suite of credit building solutions, we’re eager to help even more Canadians access credit products that meet their specific needs and maximize their long-term financial health. All Canadians deserve a fair shot at building credit history, accessing affordable credit, and reaching their financial goals. We believe Borrowell can help make that a reality.”
“As the effects of the pandemic continue to be felt, many consumers across North America are looking for help improving their financial standing,” said Win Bear, Managing Director at Kensington Capital Partners. “Borrowell is exceptionally well-positioned to address this need, having seen usage of its products increase impressively over the past months. They’ve built strategic partnerships with Canada’s major financial institutions, and they leverage data-driven customer insights to develop solutions that place the financial health of Canadian consumers front-and-center. We look forward to helping this expanded Borrowell team accelerate their ongoing growth.”
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“Through the pandemic, Borrowell has strengthened its core business model and found new ways to expand in the Canadian market through acquisition,” says Jack Fraser, Partner, BDC Capital. “With a strong, diverse leadership team, we believe the company is poised for further growth, and look forward to supporting their trajectory.”
“Borrowell has already demonstrated its ability to help its diverse customer base improve credit scores through credit transparency, education and access to financial products,” said Priya Parish, Managing Partner with Impact Engine. “We invested in the company with a belief that the acquisition and expansion of proprietary products will enable even greater financial mobility for its customers by providing a broader suite of products and services that meet the diverse needs of each user.”
This brings Borrowell’s total equity financing to $55 million and accelerates the company’s mission to help Canadians build their credit, make smart financial decisions, and achieve financial stability.
Raymond James Ltd. acted as financial advisor to Borrowell and Osler, Hoskin & Harcourt LLP acted as legal advisor. Ernst & Young Orenda Corporate Finance Inc. acted as financial advisor to Refresh and Bennett Jones LLP acted as legal advisor.
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