Canadian fintech company Purpose Financial is aiming to build its infrastructure for a period of prolonged growth and expand its product offering after raising €34.5 million in funding from Allianz X.
Allianz X, the digital investment unit of insurance and asset management firm Allianz, becomes Purpose Financial’s second-largest external shareholder following the dedicated funding round. It will also have a seat on the fintech company’s board of directors.
Purpose Financial was founded in 2013 and has since established three successful lines of business, including Purpose Investments, a digital asset management service for private clients and institutions. It has approximately C$10 billion in assets under management.
The fintech company also runs Purpose Advisor Solutions, a technology and service platform for independent financial advisers, which currently services approximately C$2 billion in assets, and Thinking Capital, a digital lending and fintech platform for small- and medium-sized enterprises, which has originated more C$1 billion in loans in collaboration with major banks and other partners.
On top of the investment helping Purpose Financial to build out its infrastructure for further growth and continue to expand its product offering, it’s also a first step towards a deeper strategic collaboration between the fintech company and Allianz.
Cameron Jovanovic, global head of retirement and wealth propositions at Allianz, says the partnership with Purpose Financial is “a significant opportunity”, given the current macroeconomic challenges and the growing importance of providing joint life insurance and asset management.
He adds: “Retirement is a strategic growth pillar for Allianz, and we recognise the importance of creating holistic, digitally-enabled solutions for our customers. We see the partnership with Purpose Financial as a step forward in developing the innovative capabilities necessary to tackle the broad set of opportunities and challenges in the retirement sector, both in Canada and around the world.”
Som Seif, chief executive officer of Purpose Financial, says: “We are excited to welcome Allianz X as an investor and partner in our business alongside our existing investors OMERS and TorQuest.”
“Our business has grown exponentially since founding in 2013 and we are still in the early stages of our journey to innovating within the financial services industry. This partnership will provide us with additional resources and expertise to accelerate our growth and continue to drive innovation across the financial services sector on behalf of consumers.”