Goldman-Backed Financeit Joins Canada Tech Startup IPO Trainby
CEO Garrity says company path likely leading to public markets
Firm helps small businesses offer installment loans to clients
Online lender Financeit Canada Inc. is adding its name to the list of Canadian tech companies aiming to go public.
Financeit, which helps small businesses offer installment loans to their clients, has raised venture capital financing from investors including Goldman Sachs Group Inc.’s merchant banking division.
“As long as we keep growing the way that we’re growing and focus on revenue and profits, when the markets open up I think we’ll be ready to look at them,” Chief Executive Officer Michael Garrity said Monday in an interview on Bloomberg TV Canada.
Financeit joins a roster of Canadian tech startups with plans to go public. Real Matters Inc., Vision Critical Communications Inc., Hootsuite Media Inc. and D2L Inc. are all considering going public in the next two years, according to people familiar with each company. The IPO pipeline comes after a series of years that saw increasing amounts of venture capital funding for Canadian tech companies, from investors on both sides of the border.
Last year, Financeit bought a portfolio of home improvement financing assets from Toronto-Dominion Bank worth about C$339 million with the help of wholesale financing firm Concentra.
Garrity didn’t give a time line for a public offering but said it was “absolutely” part of his plans.
“Goldman Sachs invests in companies that at one point can be mature enough to hit the public markets,” he said.