Canada’s “spare change” saving and investing app gets backing from National Bank and Desjardins Capital

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November 13, 2019 Entrepreneurs, Start-ups, Small Businesses, Fintech AI/ML, Data-driven, FinTech and Alternative Finance, Fundraising, Investing, Trading, Press Releases No comments

Mylo | Ted Liu | Nov 5, 2019

Mylo Raises $10M Series A From Major Canadian Financial Institutions

Montreal, November 5, 2019 – 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 450,000 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.

See: The state of Canadian FinTech in four charts

To learn more about Mylo, and begin saving and investing, visit mylo.ai.

Quick Facts

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 nonregistered 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.

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NCFA Jan 2018 resize - Canada’s “spare change” saving and investing app gets backing from National Bank and Desjardins Capital The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org