Toronto-based online financial products marketplace Ratehub has received a “major” investment from Canadian private equity firm Novacap.
BetaKit confirmed with Novacap that it acquired a majority stake in Ratehub, but the firm refused to disclose the amount it invested and the size of its stake. The spokesperson noted, though, that Ratehub’s “founders and the rest of the management team retain a large proportion of the shares.” Novacap described the deal as its fifth acquisition made through Novacap’s first financial services fund.
Founded in 2010 by Alyssa Furtado and James Laird, Ratehub is a digital platform for consumer education, financial transparency, and online shopping for financial products. Its website features tools, which can be used to compare rates for home and auto insurance, credit cards, as well as GIC and chequeing account applications, among others.
In 2018, Ratehub raised $12 million in Series A funding from Boston VC firm Elephant and MoneySuperMarket co-founder Simon Nixon, the same year that it acquired personal finance magazine MoneySense. The Toronto company also previously received an up to $495,000 investment from the National Research Council of Canada.
With Novacap on board, Laird said that Ratehub will be able to continue building its momentum and accelerate the company’s growth “both organically and through acquisitions.”
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Novacap’s financial services fund was launched in 2019 and closed last year, raising $417 million from lead investor Trans-Canada Capital, and others. Upon closing, Novacap announced that the fund had already invested in four companies: real estate tech company Accurate group, benefits advisory and third party-administration firm AGA, insurance broker GroupAssur, and vehicle replacement coverage provider Optiom.
In light of increasing mortgage rates, Novacap senior partner Rajiv Bahl said that Ratehub is well positioned to continue helping households through the renewal process and with new home purchases.
“We look forward to working with the management team to expand the reach and customer base of Ratehub.ca,” Bahl added.
Since its inception in 1981, Novacap claims to have invested in more than 100 companies and completed more than 150 add-on acquisitions. In February last year, Novacap closed a $1.865 billion USD fund, representing its largest fund at that time.
Featured image from Ratehub’s website.