Mylo, which first released its iOS app back in July (followed by an Android app soon after), announced today it has raised a $2 million seed round. The funding round included participation by Desjardins Capital, Robert Raich, and founding investor Ferst Capital Partners (FCP).
The Montreal-based fintech app automatically rounds up users’ purchases and invests the spare change. The company also announced earlier this year that it had acquired Tactex Management in a reversal of industry norms.
“We did a pre-seed round of $750,000 back in April, which really allowed us to get the product out and where we wanted it to be before we raised this round of financing,” Mylo founder and CEO Philip Barrar told MTLinTECH. “When we wanted to go out to different investors, and when we were trying to figure out who the right investors were, there was an alignment with Desjardins–whose mission is to help customers achieve their financial goals–and the Mylo mission we are embarking on and trying to achieve. So for us, it was a natural fit to be working directly with Desjardins.”
There was so much interest that the round actually ended up being oversubscribed, with an additional $500,000 confirmed to come.
“With Desjardins and Ferst Capital and Robert Raich, there was a lot of interest there, so that’s how we ended up being oversubscribed. We initially went out for $2 million, but we had some additional interesting investors we wanted to bring on board that added strategy and value to us, so we’ll be closing that probably within the next month.”
Mylo will use the funding to scale their operations and develop their backend technology to become a full-service AI-driven personal financial management platform that helps Canadians invest in their future, regardless of net worth.
” I think [how the funding will be used] can be broken down into two components. The first one is user growth. We launched the iOS application back in the summer and the Android app at the end of the year, so now we have a fantastic product that people are loving, we’re out of beta, we’re finally ready to start accelerating that and spreading the word to millions of Canadians. This will allow us to do so, and build that network we need to sustain the platform. The second part is based around the AI technology.”
“Now that we have users on board, we’re able to start working with some financial data and working on the bigger vision of helping them achieve their financial goals. With the data we’ve been able to acquire in the past few months, with the user growth that we’re going through right now, and the technology we’re able to build out around AI, we’ll be able to give better recommendations for financial products.”
With the Mylo app, Canadians can start investing with less than $1, automatically investing spare change into a personalized, diversified portfolio of Exchange-Traded Funds (ETFs). Users can set investment goals, accelerate their savings with one-time deposits called Boosts, and withdraw invested funds at any time. Since launching this July, Mylo has helped Canadians save and invest over $1 million through rounding up more than 1.6 million purchases.
“Desjardins Group has been helping Canadians plan their futures for decades. We’re excited about how fintech solutions like Mylo can help respond to the financial needs of Canadians” said Jacques Perreault, Associate Vice-President, Technological Innovations at Desjardins Capital. “Mylo is making investing easy for all Canadians, regardless of the size of their paycheque or the amount they can afford to set aside, and we’re invested in the idea that everyone can and should be saving for their goals.”
“We’re focused on building the next generation of innovative technology, using AI in conjunction with financial data, to help Canadians improve all aspects of their financial lives. This partnership is a critical milestone in realizing that vision,” said Barrar.
Today Mylo Financial Technologies Inc. (Mylo), the
Montreal-based fintech app that lets users round up their purchases and invest the spare change,
announced it has closed $2 million CAD of seed funding. The funding round included participation
by Desjardins Capital, Robert Raich and founding investor, Ferst Capital Partners (FCP). Mylo
will use the funding to scale their operations and develop their backend technology to become a
full-service AI-driven personal financial management (PFM) platform that helps Canadians invest
in their future, regardless of income or net worth. In addition to the $2 million CAD of financing,
Mylo has a confirmed commitment for an additional $500,000 CAD that will close in the months
ahead, bringing the total to $2.5 million in seed funding.