Borrowell secures $25m in funding to acquire Refresh Financial

February 23, 2021

Canadian FinTech Borrowell has raised $25m to complete the acquisition of Refresh Financial and to support future growth.

Borrowell is a credit education company and Refresh Financial provides underserved Canadians with long-term access to affordable and sustainable credit.

The round brings the total raised by Borrowell to $55m.

New backers Kensington Capital Partners, BDC Capital, iA Financial Group and Impact Engine supported the raise alongside existing investors Portag3 Ventures, White Star Capital, National Bank of Canada’s NAventures and Equitable Bank.

“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 maximise 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.”

Win Bear, managing director at Kensington Capital Partners, added, “As the effects of the pandemic continue to be felt, many consumers across North America are looking for help improving their financial standing. 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.”

Jack Fraser, partner at BDC Capital, said, “Through the pandemic, Borrowell has strengthened its core business model and found new ways to expand in the Canadian market through acquisition. With a strong, diverse leadership team, we believe the company is poised for further growth, and look forward to supporting their trajectory.”