Mylo, the fintech app that invests Canadians spare change, raises $2.5M in seed round
Montreal-based startup aims to bring financial inclusion to Canadians by rounding up everyday purchases and investing the spare change
MONTREAL, January 9, 2018 -- 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.
"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."
More than half of millennials have less than $1,000 in their bank accounts, and while four in five Ontario millennials are concerned with saving, only one in two are investing. Mylo is using technology to make it easier for Canadians to incorporate saving and investing into their daily habits, promoting financial inclusion to a segment of the population that is traditionally underserved by the wealth management industry.
With Mylo, Canadians can start investing with less than $1, automatically investing their spare change into a personalized, diversified portfolio of ETFs (Exchange-Traded Funds). Users set an investment goal during the signup process, for example a down payment on a house or a vacation. Mylo users can also accelerate their savings by making one-time deposits into their Mylo account, called Boosts, and invested funds can be withdrawn from a user's account at any time. Since launching in July 2017, Mylo has experienced exponential growth and helped Canadians save and invest over $1 million by rounding up over 1.6 million daily purchases.
"We're thrilled that Desjardins Capital, Robert Raich and Ferst Capital Partners share our vision of empowering Canadians to achieve their financial goals, and investing spare change is just the beginning," said Philip Barrar, CEO and Founder of Mylo. "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."
Mylo acquired Tactex Asset Management in June 2017, making them the only automated, goal-based investing service to provide Canadians in every province with a professionally managed, diversified portfolio. Mylo launched their iOS app in July 2017 and the Android app was released last fall.
To learn more about Mylo, visit mylo.ai.
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About Mylo Financial Technologies
Mylo is helping Canadians achieve their financial goals by rounding up daily purchases and investing the spare change. Mylo uses artificial intelligence to provide personalized insights and recommendations so that users can make better financial decisions. Mylo helps customers optimize their financial lives by helping them find the right mortgage, significantly reduce interest payments, maximize travel points and more.
About Desjardins Capital
Nearly 45 years strong, Desjardins Capital (previously Desjardins Business Capital régional et coopératif and Desjardins Venture Capital) has a mission to value, support and nurture the best of Quebec entrepreneurship. With assets under management of C$2 billion, Desjardins Capital helps contribute to the longevity of more than 430 companies, cooperatives and funds in various sectors from across Quebec. In addition to helping to create and maintain more than 68,000 jobs, this subsidiary of Desjardins Group offers business owners access to a large business network and supports their business growth. For more information, visit our website or our LinkedIn page.
For additional information, contact:
Mylo Financial Technologies