Thinkific files for TSX IPO as Vendasta prices offering at $100 million

Thinkific

Vancouver software-as-a-service (SaaS) startup Thinkific Labs has officially filed to go public on the Toronto Stock Exchange as Saskatoon-based Vendasta, which filed to go public last week, announced plans to raise $100 million through its own offering.

Thinkific, which filed its preliminary long-form prospectus Monday, helps businesses create, market, and sell online courses. The terms of Thinkific’s initial public offering (IPO) have yet to be determined. The company has applied to trade on TSX under the symbol “THNC.”

Thinkific plans to use the proceeds from its planned IPO to invest in sales and marketing, its platform, and other unspecified “future opportunities.” Founded in 2012 by CEO Greg Smith, COO Miranda Lievers, CTO Matt Payne and Chief Strategy Officer Matt Smith, Thinkific offers cloud-based software that helps entrepreneurs and businesses launch, grow, and diversify their businesses by creating and selling online courses and other learning products through its platform.

This news comes as the startup said it has experienced significant growth over the past few years, including during COVID-19. Smith previously said that, because of the pandemic, the course creation industry has been “changed forever.” In December, the company said it surpassed 100 million total course enrolments on its platform, according to its preliminary prospectus filing.

RELATED: Vendasta files for public listing on the Toronto Stock Exchange

For the fiscal year that ended on December 31, 2020, Thinkific recorded $21.07 million USD in revenue for a net loss of $1.29 million, according to its preliminary prospectus. Thinkific currently employs 270 people, and aims to scale to 500 by the end of 2021. To date, the company claims it has helped over 50,000 entrepreneurs and businesses earn over $650 million through online courses.

Last fall, Thinkific raised $22 million CAD in growth financing, which it has used to accelerate its product innovation. The round brought its total funding to date to $25 million. Thinkific is backed by Rhino Ventures, which plans to buy an unspecified number of subordinate voting shares from the offering.

Thinkific joins a growing list of Canadian tech startups that have turned to public markets in recent months. This trend includes fellow SaaS startup Vendasta, FinTech firm Payfare, healthtech companies Dialogue and Mednow, and ecommerce startups General Assembly Pizza and KITS Eyecare.

Having officially filed for its IPO on the TSX last week, Vendasta announced Monday it plans to issue approximately 7.1 million common shares priced between $14 and $16. Vendasta offers a cloud commerce platform for small and medium-sized businesses. It is set to be listed on the TSX under the symbol ‘VND.’

Vendasta has raised more than $50 million to date from investors like Canadian Business Growth Fund (CBGF), Vanedge Capital and BDC Capital through its IT Venture Fund. Vanedge Group holds 31 percent of Vendasta’s outstanding common shares, with BDC holding 29 percent. The pair are set to remain as the principal shareholders with over 10 percent of outstanding shares following the closing of the IPO.

Photo of Thinkific’s founding team, courtesy of Thinkific

Josh Scott

Josh Scott

Josh Scott is a BetaKit staff writer who loves to tell Canadian business and tech stories. His coverage is more complete than his moustache.