Borrowell, a Canadian credit education company and one of its largest fintech companies, today announced it has completed the acquisition of Refresh Financial, a Canadian credit provider, and raised $25 million in funding for the acquisition and to support future growth. The acquisition doubles Borrowell’s revenue and employee base.
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.”
“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.”
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.