Canadian FinTech Finofo attracts $1.25m for its unique FX automation tool

Finofo, a Canadian-based financial technology start-up, has emerged with a vision to streamline the often complex world of foreign exchange (FX).

Today, the company, co-founded by Charles Maranda, Prateek Sodhi, and Malav Shah, has announced a groundbreaking platform that aims to provide businesses with a more transparent, efficient, and cost-effective method for handling cross-border transactions.

The company has secured an impressive $1.25m in pre-seed funding, with Motivate Venture Capital leading the round, according to a report from TechCrunch. Notably, other participants include SaaS Venture Capital, Sweet Spot Capital, and Desjardins, a major player in the Canadian financial arena.

Delving deeper into Finofo’s offerings, their platform serves as a bridge for businesses to effortlessly manage multi-currency accounts, easing the process of sending and receiving money on a global scale. Beyond mere currency conversion, the company stands out with its automation feature for accounts payables. Such capabilities are aimed at replacing the traditional “black box” nature of the FX world, which has left many businesses in the dark.

Finofo’s fresh injection of funds is earmarked to further enhance its platform, aiming to introduce a proprietary algorithm. This new feature will enable the company to offer financial planning advice, by analysing clients’ financial data. By assessing accounting details, such as invoices and budgeting spreadsheets, Finofo hopes to guide businesses in determining the best times and methods for currency conversions.

In a discussion about the company’s direction, Finofo CFO Charles Maranda explained that the goal of the financial planning product is to help businesses understand the risk from currency fluctuation and manage it effectively. “This stands in stark contrast to traditional financial institutions that rely on a one-size-fits-all approach and aggressive sales tactics.”

The company’s ambitions don’t stop there. Maranda emphasises a vision wherein Finofo evolves into a comprehensive “super app” for business financial operations, creating a seamless environment for planning, strategising, and executing financial decisions.

It’s noteworthy to mention that Finofo, despite being founded by first-time entrepreneurs, has already attracted attention from prominent investment firms. While they narrowly missed an investment from a16z due to being “too early-stage”, the founders’ tenacity led to introductions to other investors who expressed keen interest.

As they look to the future, Finofo is setting its sights on the Canadian market, partnering with local banks and registering with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). With a commitment to exceptional customer service and education, Finofo hopes to rapidly gain the trust of businesses, ensuring that they have a reliable partner in their cross-border financial endeavours.

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