Promising start Montrealer fintech company, Moka Financial Technologies, is moving to Vancouverite Mogo, which thanks to this $ 64 million deal has become a staple of the sector in Canada.
“The opportunity arose when I was raising money during the Series B fundraising round. We decided to continue with Mogo because our companies share a common mission: to help people achieve their financial goals.” , Argues at duty Philip Barrar, CEO and Founder of Moka. He would like to clarify that this deal is a “union of powers.”
It is always difficult to see the main ships being bought by foreign interests, even if it is a Canadian company.
Mocha, which was called Mylo until this summer, is known in Canada for its personal financial app. This allows for automatic approximation of daily purchases, and with minimal administration fees, for “loose change” investments in various portfolios of ETFs.
The Moka app was created in 2016 with the goal of “helping millennials achieve their financial goals,” and has been downloaded by over a million people. With over 500,000 active members and 100,000 monthly subscribers, the company generated nearly $ 6.5 million in revenue in 2020.
The acquisition would allow Vancouver-based Mogo to cement its position in the fintech sector (or Financial technology In Canada. In a statement released on Tuesday, David Feller, CEO and founder of Mojo, said this acquisition was part of his company’s growth strategy.
Mogo already offers personal loans, lets you buy and sell bitcoins, monitor your credit rating, and provides protection against identity theft. In the medium term, the company also hopes to launch a free stock trading platform.
Moka products and technologies will be integrated with those in existing Mogo digital portfolios. The deal will increase the number of users of Vancouver-based solutions from 1.2 million to 1.7 million, resulting in assets under management of nearly $ 250 million.
Under the terms of the deal, Mogo will exchange five million of its shares and incur $ 3 million in debt start Montreal. Thus, Desjardins Capital and the National Bank, which own shares in MOCA, will become shareholders in Mojo. The repurchase must be formalized during the second quarter.
good news “
This advertisement was positively received at Bonjour Startup Montreal. “This proves that we have excellent and attractive companies,” he cheered in an interview with the organization’s president, Leight Lamond.
Regarding the impact on the Montreal ecosystem, remember that Mogo has pledged in its letter of intent not to “change the company’s operations in Montreal”. Philip Barr, the current CEO of Mocha, will become the director of innovation within the new organization.
Obviously, “It is always difficult to see major vessels being bought by foreign interests, even if it is a Canadian company,” admits MI am Lamond, explaining that “always wanting to see more Startups Grow here while retaining the possessions of Quebec. “
Louis Felix Bennett agrees. Director General of the Movement Accelerated Innovation of Quebec, which brings together organizations that support Startups In the county, he admits that taking over a company after five years in existence “may not be an idea that one has” success. “
However, he adds, it does contribute to innovation, as well as “creating future investors and entrepreneurs in a chain of experiences.” With the “strip Financial technology Very strong in Canada, “and the desire to” seek out critical audiences of users, clients and patents needed for growth and global competitiveness “, consolidation was expected, he says.
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