Victoria-based FinTech startup Peloton Technologies has secured $2 million CAD in seed funding just three weeks after acquiring KIS Payments.
A spokesperson for Peloton declined to disclose the investors in the company’s latest equity round but noted that their expertise spans payments, banking, risk management, compliance, accounting, IT architecture, and securities law. The spokesperson noted some of the investors have joined Peloton Technologies’ advisory board.
John MacKinlay, Peloton Technologies’ executive chair of the board, said the new capital will be key to the startup’s acquisition strategy, calling the round a “precursor” to a larger raise planned for early 2024.
The round comes only a few weeks after Peloton acquired Nanaimo-based KIS Payments.
Founded in 2011 by CEO Craig Attiwill, Peloton Technologies offers an all-in-one payments platform aimed to help Canadian small and medium-sized businesses (SMBs) process payments, complete transfers, exchange currency, and store payment data.
The funding round comes only a few weeks after Peloton closed its acquisition of Nanaimo, BC-based payment processing startup KIS Payments for an undisclosed amount. In a statement released Thursday, Peloton said it had recently acquired another company, which it described as an independent sales organization, and rolled that firm’s merchant services operations into Peloton’s sales team.
This seed round also comes roughly four months after Peloton received $1.5 million from the Pacific Economic Development Agency of Canada (PacifiCan), which came in addition to PacifiCan’s $500,000 contribution in July 2022.
RELATED: FinTech startup Peloton Technologies announces acquisition of KIS Payments
SMB-targeted FinTech solutions have undergone a shift amid a challenging economic year. Last month, the 12-month small business confidence index dropped to one of its lowest readings in nearly 15 years as these businesses grapple with high concerns about occupancy, borrowing, insurance and wage costs.
Some lenders, such as Toronto-based Caary Capital and United States-based Jeeves have either lowered their credit limits for SMBs or ceased working with SMBs altogether.
Some Canadian startups, such as Toronto-based Float, are doubling down on the Canadian SMB segment. That company recently released a high-yield offering that pays SMBs four percent—more than double the interest rates on their cash balances compared to traditional banks.
Feature image of Craig Attiwill, courtesy of Peloton Technologies via Facebook.