Canadian fintech Mogo Inc. (TSX:MOGO) (NASDAQ:MOGO) announced on Tuesday it is set to acquire Moka Financial Technologies, a Canada-based saving and investing app, in an all-stock transaction. Launched in 2017, Moka (originally Mylo) is on a mission to help its users achieve their financial goals through its savings and investing app.
“The Moka app automatically rounds up your everyday purchases and invests the spare change, which makes it possible for everyone to start investing with no minimum investment, lifestyle change or financial knowledge required.”
The company itself has raised $14 million in funding from NAventures, the venture capital division of National Bank of Canada, and Desjardins Capital, the venture capital arm of North America’s largest association of credit unions. Moka currently has more than 500,000 active members and over 100,000 monthly subscription members, and the company generated approximately $6.5 million of revenue in 2020. It has approximately $250 million of assets under management and registered portfolio management capabilities throughout Canada and in Europe, where the company launched in France during 2020. Speaking about the acquisition, David Feller, Mogo Founder and CEO, stated:
“Like Mogo, Moka is driven to help users improve their financial health, and they have built an innovative solution to enable consumers to easily save and invest money. By adding these digital saving and investing products – along with Moka’s technology platform and experienced fintech team – we will dramatically enhance what is already one of the most compelling and differentiated value propositions in Canadian finance. Moka will complement our existing MogoCrypto account and form the core of MogoWealth, making Mogo’s digital wallet the most comprehensive solution in Canada.”
Philip Barrar, Founder & CEO of Moka, added:
“We’re very excited to join Mogo, a fintech pioneer and one of Canada’s leading fintech companies. Moka has built a robust customer-centric technology platform and, as part of a larger, more diversified and well-capitalized digital platform, we enhance the opportunity to grow our business and, importantly, to give our members access to even more digital products and tools to improve their financial well-being. We look forward to bringing these two companies together.”