Wafra Capital Partners acquires Toronto FinTech startup Financeit from Goldman Sachs

The sale comes five years after Goldman Sachs acquired Financeit.

Goldman Sachs Asset Management has sold FinTech startup Financeit to New York-based investment advisory firm Wafra Capital Partners (WCP) for an undisclosed amount.

While the deal and its closing date are not being disclosed, The Globe and Mail reported that a source told the newspaper that the sale was valued between $350 million to $500 million.

Financeit specializes in financing for the home improvement industry.

WCP is owned by the Public Institution for Social Security of Kuwait of Kuwait, an autonomous agency controlled by the State of Kuwait. WCP is a New York-based investment advisory firm, claiming over $7 billion in fund assets and commitments under management.

Goldman Sachs first invested in Financeit in 2015, closing a round of equity financing led by its merchant banking division. While Financeit CEO Michael Garrity did not disclose the amount at the time, he indicated that it was larger than its $13 million Series A round in 2013.

Goldman Sachs increased its investment in Financeit in 2017, becoming a majority owner for an undisclosed amount.

WCP said its purchase will support Financeit in its projected growth towards $1 billion in annual loan originations, which will allow the startup to expand its strategic partnerships, and advance product innovation.

Loan origination is the multi-step process individuals go through to obtain a mortgage or home loan.

RELATED: Financeit, BC government launch low-interest home energy financing program

Financeit specializes in financing for the home improvement industry. The startup provides payment plans to enterprise businesses, big box retailers, equipment manufacturers, and dealer networks for their projects and purchases, as well as offering solutions for consumers.

In 2021, the startup claims to have added over 1,100 new merchant partners, processed over 115,000 loan applications, and funded a record $534 million in loans.

Financeit further claims that it reached $2 billion in lifetime loan originations, taking only two years to double the previous milestone of $1 billion, reached in 2019.

Founded in 2011, Financeit raised $22 million in equity financing in 2016. That same year the startup partnered with Concentra, a wholesale bank and trust company for Canada’s credit unions. Together, they leveraged a $100 million funding facility, using it in part to acquire TD Bank’s indirect home improvement financing assets, consisting of approximately 45,000 TD loans, and 800 merchant dealers with a book value of approximately $339 million.

Feature image courtesy Financeit.

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in Wired.com, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.

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