A Canadian fintech is making major strides to become a huge player in the POS world.
Flexiti Financial has announced their acquisition of TD Financing Services’ Canadian private label credit card portfolio, valued approximately at $250 million. This move adds a whopping one million new credit card customers to Flexiti’s client base, along with 900 new merchant locations that offer TD’s financing services.
“This acquisition of TD Financing Services’ private label credit card portfolio represents an important milestone for our company and the consumer lending space in Canada,” said Peter Kalen, founder and CEO of Flexiti. “It instantly positions us as one of the largest consumer lenders with a cardholder base of over one million Canadians.”
This is a major move for the Toronto-based fintech as it looks to build out its POS consumer financing platform for retailers both in-store and online. As Kalen said, acquiring this new credit portfolio instantly puts Flexiti into the top ranks of fintech companies in the country. The new cards are targeted towards specific store brands, mainly in home improvement, jewelry and furniture.
To finance the acquisition, one of Flexiti’s founding investors has made a huge investment. Globalive Capital will inject $50 million as an equity investment, taking control of Flexiti and making sure this new move goes smoothly.
“Businesses are looking for alternative financing options tailored to their customers’ lifestyles or needs, and Flexiti is uniquely positioned to capitalize on this growing market trend,” said Anthony Lacavera, founder of Globalive Capital. “This investment aligns with Globalive Capital’s core principle of finding companies and entrepreneurs that are breaking down barriers and challenging the status quo by providing them with the resources they need to accelerate growth.”
As part of this move, Lacavera’s tech-focused spinoff of Globalive, called Globalive Technology Partners (GTP), will work with Flexiti to build blockchain and AI technology to work with the fintech. This will likely come from Globalive BIGDEV, another joint venture between GTP and the Business Instincts Group that acts as a developer shop to build out blockchain and AI solutions for clients.