A promising one Get started Moka Financial Technologies, a Montreal -based company that specializes in financial technologies, has been handed over to Vancouver -based Mogo, which has become, thanks to this $ 64 million transaction, a major player in the Canadian sector.
“The opportunity arose when I raised funds in our Series B funding round. And we decided to continue with Mogo because our companies share a common mission: to help people achieve their financial goals. . “, argues to the Homework Philip Barrar, CEO and founder of Moka. This transaction was a “union of forces”, he insisted.
It’s always hard to see flagships being bought by foreign interests, even if it’s a Canadian company
Moka, called Mylo until this summer, is known in Canada for its personal finance app. This makes it possible to automatically round up day-to-day purchases and, thanks to minimal management fees, to invest “the spare change” in diverse portfolios of exchange-traded funds.
Made in 2016 with the goal of “helping millennials achieve their financial goals”, Moka’s app has been downloaded by more than a million people. With more than 500,000 active members and 100,000 monthly subscribers, the company generated nearly $ 6.5 million in revenue by 2020.
The acquisition will allow Vancouver-based Mogo to establish itself in the financial technology sector (or ” fintech “) in Canada. In a press release published Tuesday, Mogo CEO and founder, David Feller, maintains that this acquisition is part of his company ‘s growth strategy.
The Mogo platform already offers personal loans, buys and sells bitcoins, monitors credit ratings, and offers identity theft protection. In the medium term, the company also expects to launch a free stock trading platform.
Moka’s products and technologies will be integrated into Mogo’s existing digital wallets. This transaction will increase the number of users of the Vancouver -based company’s solutions from 1.2 to 1.7 million, resulting in assets under management of nearly $ 250 million.
Under the terms of the transaction, Mogo will exchange five million of its shares and assume the company’s $ 3 million debt. Get started Montrealer. Thus, Desjardins Capital and National Bank, which hold shares in Moka, will become shareholders of Mogo. The acquisition should be formalized in the second quarter.
Good news “
The announcement was positively received at Bonjour Startup Montreal. “This proves that we have great companies that are attractive,” exclaimed in an interview with the organization’s president, Liette Lamonde.
Regarding the impact on Montreal’s ecosystem, he recalled that Mogo had made a commitment in his letter of intent not to “change the company’s Montreal operations”. Moka’s current CEO, Philipp Barr, will be the Chief Innovation Officer within the new organization.
Clearly, “it’s always hard to see flagships being bought by foreign interests, even if it’s a Canadian company,” M. admits.ako Lamonde, who defined the “wish to always see more startups grew up here while maintaining Quebec property ”.
Louis-Félix Binette agrees. The executive director of the Mouvement des accelerateurs d’innovation du Québec, which brings together supporting organizations startups of the province, has admitted that taking on a company after five years of existence “is probably not the idea that one has ‘success'”.
However, he added, it is contributing to innovation, as well as “creating future angel investors and experienced serial entrepreneurs”. In “a sector fintech very strong in Canada ”and a desire to“ find the critical masses of users, customers and patents necessary for growth and global competitiveness ”, a merger is foreseeable, according to him.