Progressa nets $84m in equity and loan funding round

Canada-based online lending platform Progressa has netted $84m in an equity and loan funding round.

The equity side of the round was co-led by Canaccord Genuity and Gravitas Securities, with participation also coming from Eight Capital and Paradigm Capital. The capital will enable Progressa to unlock a forward-flow whole loan purchasing program for up to $72m with Canadian credit fund Cypress Hills Partners.

This equity funding is expected to be Progressa’s final private round, as it has raised more than $15m in equity capital since launch, and is now looking towards and IPO, according to the company.

Progressa’s financing was largely supported by Canadian investment banks which see potential in the company’s potential IPO.

The company offers Canadians with access to credit lines between $1,000 and $15,000 on repayment terms of up to 60 months. Its goal is to encourage ‘borrowing for the right reason’, such as paying off due bills.

Through Progressa, collection agencies can offer proactive solutions to improve recovery while protecting its brand reputation, while merchants can partner with Progressa to offer credit at the point-of-sale for consumers.

Near the end of 2018, the company is expecting to near $100m in total loan funding. With this additional line of capital, the company is expecting to onboard new banking partners and further its position in the Canadian lending space.

Progressa co-founder and CEO Ali Pourdad said, “Today’s enterprise business partners are utilizing the Company’s Powered by Progressa solutions to improve their customer experience, while enhancing collections recoveries and mitigating significant risk, a true win for both enterprise and Canadian consumers.

“We are pleased with this broad level of support from Canadian investment banks who see that Progressa is making a positive difference in the lives of Canadians.”

Earlier in the month, Canada-based Alterna Savings formed a partnership with online homebuying platform NestReady to simplify the real estate services for Alterna.

Copyright © 2018 FinTech Global

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