Canada's "spare change" saving and investing app gets backing from National Bank and Desjardins Capital
MONTREAL, Nov. 5, 2019 /CNW Telbec/ - Mylo, the Montreal-based fintech, has secured $10M in financing for its app that helps Canadians automate their saving and investing. The Series A round was led by National Bank's corporate venture capital arm, NAventures, with follow-on investment from Desjardins Capital, Ferst Capital Partners and Tactico. This brings the company's total funding up to $14M.
"Mylo's mission has always been to help Canadians achieve their financial goals. With over half a million Canadians creating accounts to save and invest on our platform in only two years, we know we're on the right track," said Mylo Founder and CEO, Phil Barrar. "This investment from important strategic partners lets us start the next phase of our mission. Our team is focused on building innovative new products to help Canadians overcome any financial roadblocks that stand in the way of their goals."
The investment by National Bank reinforces the institution's commitment to innovation.
"We see great alignment between Mylo's mission and our own focus on providing individuals with the digital tools they need to manage their finances," said Igal Ohayon, Director of Venture Capital at NAventures. "National Bank is well-positioned to support Mylo's growth and contribute to Canada's fintech ecosystem, while also working to strengthen its own offering."
This fundraising marks two years of rapid growth for Mylo, boosted by the January 2019 launch of Mylo Advantage. The $3/month premium service includes access to registered accounts (TFSAs and RRSPs), socially responsible investing (SRI) options, next-day withdrawals and monthly cashback Perks from millennial-friendly brands like Netflix and Foodora.
"Investing in a TFSA is the smartest way for most Canadian millennials to save, yet only about 40% of us have one. Since launching Advantage, 9 out of 10 new users have opened a TFSA. This is just one example that illustrates how Mylo can help Canadians make better financial decisions, and we're just getting started," said Barrar.
In addition to developing new products, Mylo will use the new capital to hire actively across all departments, continue growing in Canada and expand internationally.
To learn more about Mylo, and begin saving and investing, visit mylo.ai.
- Canadians need help saving. Average net saving for all Canadian households was $852 in 2018, and national average of debt was $23,496 in the first quarter of 2019 (not including mortgages).
- Canadian millennials particularly need help.Across Canada, it would take 13 years of full-time work for the typical Canadian millennial to save for a 20% down payment on an average-priced home.
- Our analysis found that a Canadian who invests consistently from the age of 25 to 65 could end up with nearly 50% more money by investing within a TFSA than with a non-registered account. However, only around 40% of Canadian millennials have one.
- Millennials are twice as likely than baby boomers to consider environmental, social or governance (ESG) factors in their investing and are driving the rapid rise of SRI in Canada, which now accounts for 50.6% of all Canadian assets under management.
About Mylo Financial Technologies
Mylo is the Montreal-based fintech that was founded with the social mission to help Canadians achieve their financial goals. The company launched its automated savings and investment app in July 2017, and is now focused on building a suite of other innovative products to help Canadians. To date, over 450,000 Canadians have created accounts to save and invest with Mylo. Prior to launch, Mylo acquired Tactex Asset Management, which today manages over $140M in AUM. Mylo has now raised a total of $14M in funding, most notably from National Bank and Desjardins Capital, two of Canada's biggest financial institutions.
About National Bank of Canada
With $276 billion in assets as at July 31, 2019, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. It has nearly 25,000 employees in knowledge-intensive positions and has been recognized numerous times as a top employer and for its commitment to diversity. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.
About National Bank NAventures
NAventures, the corporate venture capital arm of National Bank of Canada, takes equity stakes in startups and growing businesses to foster growth in companies that will shape the financial institutions of the future. Follow NAventures activities at nbc.ca/naventures.
About Desjardins Capital
Nearly 45 years strong, Desjardins Capital has a mission to value, support and nurture the best of Quebec entrepreneurship. With assets under management of C$2.5 billion, Desjardins Capital helps contribute to the longevity of some 500 companies, cooperatives and funds in various sectors from across Quebec. In addition to helping to create and maintain more than 60,500 jobs, this subsidiary of Desjardins Group offers business owners access to a large business network and supports their business growth. For more information, visit our website or our LinkedIn page.
For further information: please contact Jane Le, Communications Manager at Mylo: [email protected], (514) 550-6820