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Borrowell Raises $25 Million to Fund Refresh Financial Acquisition

Borrowell

Feb 22, 2021 5 min read

It’s only February, but it’s proving to be an eventful year for Borrowell already...we’re excited to announce that Refresh Financial is officially a part of the Borrowell team! Refresh Financial is a Kelowna-based fintech company that specializes in providing underserved Canadians with affordable access to credit. Their secured cards and credit building loans have helped over 100,000 Canadians build credit history and achieve long term financial success.

Our acquisition of Refresh Financial closed earlier this month, and we are thrilled to take our next steps together as a combined team. Here’s what Borrowell’s CEO and co-founder, Andrew Graham, had to say about our new united team.

“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 we can help make that a reality.” 

We’re also proud to announce that we’ve raised $25 million in additional funding from both new and existing investors. These new funds will help us build the right financial tools and products for our members. Further investments in digital tools and data science allows us to better serve our over 1.5 million members.

We’re eager to help even more Canadians build credit and make great financial decisions. By combining credit score insights and digital tools with tangible credit building solutions, we believe we can make financial stability possible for all Canadians. 

You can learn more about our exciting next steps from our featured story in BetaKit. You can also read our full press release here, or scroll down to read it in full below.

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Borrowell Raises $25 Million in New Funding and Completes Acquisition of Refresh Financial

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.

TORONTO, February 22, 2021 (GLOBE NEWSWIRE) -- 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.

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.”

“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.

About Borrowell

Borrowell is dedicated to making financial stability possible for everyone. The company offers free credit scores, education, and weekly credit monitoring, as well as innovative digital tools like personalized credit coaching and AI-powered  financial product recommendations.

With over one and a half million members, Borrowell is one of largest fintech companies in Canada. Borrowell has won numerous awards, including being named one of the top 100 fintech companies in the world by KPMG, earning a spot on the Deloitte Technology Fast 50™ list of fastest growing companies in Canada (2019 and 2020), and making App Annie's list of Breakout Finance Apps for 2019. For more information, please visit www.borrowell.com. You can also download the Borrowell mobile app for Android and iOS today.

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