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Canadian Tech in 100 Words

 

Rising Loan Losses Hit Canadian Fintechs as Borrowers Struggle

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Canadian fintech lenders like Shopify and Lightspeed are facing rising bad debts, similar to the challenges banks are experiencing as high interest rates strain borrowers. According to The Logic’s analysis of financial statements, companies such as Propel, Goeasy, and Mogo have seen an increase in loan losses and provisions, reflecting concerns about borrowers’ ability to repay.

Shopify set aside US$28 million to cover bad loans in Q2 2024, up from US$19 million the previous year. Analysts are concerned about the risks fintechs face, especially without the regulatory frameworks that govern traditional banks.

Want to know more? Check out the source code on The Logic.

Calgary’s DCPayments Pushes the Boundaries of Fintech

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Calgary-based Digital Commerce Payments (DCPayments) continues to lead Canada’s payments industry with its innovative, tech-driven solutions. Founded by former Shell employees Jeff Smith and Susan Anderson, DCPayments evolved from its roots in ATM services to offer a suite of digital payment technologies, including eTransfer, EFT, and digital wallets.

The company’s success is built on its ability to adapt to market demands and provide integrated payment solutions that streamline financial management. Led by President Pamela Draper, DCPayments focuses on expanding through strategic partnerships and acquisitions, ensuring its continued leadership in the fintech space.

Want to know more? Check out the source code on Fintech.ca.

Spare Raises $42M in Series B to Expand Transit Solutions

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Vancouver-based Spare has successfully closed its Series B funding round, raising $42 million. Led by Inovia Capital, with participation from Kensington Capital and Nicola Wealth, this funding will help Spare meet the growing demand for innovative transit solutions, particularly in the paratransit sector.

Spare’s AI-driven platform is used by major transit agencies, including Dallas Area Rapid Transit and Bay Area Rapid Transit, to modernize services. The new capital will support Spare’s global expansion and platform development. CEO Kristoffer Vik Hansen expressed gratitude to Inovia for their ongoing support since Spare’s inception in 2015.

Want to know more? Check out the source code on Techcouver.

TSX30 Highlights Energy, Mining, and Industrial Growth in Canada

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The Toronto Stock Exchange (TSX) unveiled its 2024 TSX30®, ranking the top 30 performing companies based on dividend-adjusted share price growth over three years. Leading the list is Hammond Power Solutions, with a 928% increase, driven by advancements in electrification.

The companies on the list represent over $380 billion in market capitalization and reflect strong growth in sectors like energy, industrial products, and mining. This year’s ranking highlights a shift towards value investing, with 63% of the companies paying dividends. TSX CEO Loui Anastasopoulos emphasized the role of these companies in shaping Canada’s economic future.

Want to know more? Check out the source code here.

Windsor’s Optimotive Lands $2M Seed Round for Autonomous Robots

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Vancouver’s Version One Ventures has led a $2 million seed round in Optimotive, a Windsor-based company building autonomous robots for extreme environments like construction, mining, and oil and gas. The round also saw participation from Garage and NewLab.

Optimotive’s robots, including IRIS and BOX, are designed to handle repetitive and hazardous tasks, making them cost-effective solutions for tough job sites. CEO Scott Fairley leads the company, which is vertically integrated, controlling both hardware and software development. The investment supports Optimotive’s goal to expand its fleet with new robots like MULE and SCRUBBLES.

Want to know more? Check out the source code here.

Canadian Accelerator Startups Show Lower Revenue, Despite Growth

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A recent report by Innovation, Science and Economic Development (ISED) reveals that Canadian startups in accelerators and incubators generally earned less revenue than non-participating firms, despite initial benefits. The study analyzed data from over 8,000 startups and showed that while accelerator-backed startups had higher employment growth and spent more on research and development, they generated nearly 30% less revenue overall.

Critics, including former BlackBerry co-CEO Jim Balsillie, argue that the report conflates correlation with causality. Some large accelerators, like MaRS, are facing mounting scrutiny over their use of public funds.

Want to know more? Check out the source code on The Logic.

Beacon Launches First End-to-End Remittance App for Canadian Newcomers

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Beacon Remit, part of the Beacon Super App, offers a revolutionary remittance solution for Canadian immigrants needing to transfer money out of India. As the first app to provide end-to-end remittance services, it simplifies the process for newcomers, ensuring compliance with Reserve Bank of India regulations.

Beacon Remit is about 50% cheaper than traditional bank transfers, significantly reducing wait times and fees. Co-founded by Stuart Szabo and Aditya Mhatre in 2023, the Toronto-based fintech startup aims to ease the financial transition for immigrants, offering additional resources to help them settle in Canada.

Want to know more? Check out the source code on Fintech.ca.

Apple Introduces iPhone 16, Powered by New AI Operating System

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Apple introduced the iPhone 16, its first device powered by the new AI operating system, Apple Intelligence. The phone will be available on September 20, with the AI tools, including an enhanced Siri, AI-generated emojis, and a new search feature using the camera, rolling out in October.

With nearly 1.5 billion iPhone users worldwide, Apple’s AI integration could revolutionize how people interact with their phones. While Apple relies heavily on iPhone sales, analysts are divided on whether AI features will drive upgrades and reverse recent sales slowdowns.

Want to know more? Check out the source code on The Peak.

Elevate Festival Returns with Star-Studded Lineup in Toronto

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The sixth annual Elevate Festival, Canada’s largest tech and innovation event, returns to Toronto from October 1-3. Hosted at Meridian Hall and the St. Lawrence Centre for the Arts, the festival will feature prominent speakers, including journalist Lisa LaFlamme, music video director Director X, astronaut Chris Hadfield, and Shopify President Harley Finkelstein.

The event, organized by not-for-profit Elevate, offers attendees discussions, panels, and workshops on technology, business, and social innovation. Elevate aims to inspire the next generation of leaders through thought-provoking conversations and networking opportunities.

Want to know more? Check out the source code here.

Luge Capital Fund II Raises $96M to Back Early-Stage Fintech Startups

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Luge Capital announced today the closing of $96 million for its second fintech-focused fund, Luge Capital Fund II. This brings the firm’s total assets under management to over $180 million across two funds. The new capital comes from investors like Venture Ontario, Alberta Enterprise Corporation, and AAF Management, building on previous backing from CDPQ, Desjardins, and BDC Capital.

Luge Capital will continue to focus on early-stage fintech startups in Canada and the US. The firm has already made four investments from the second fund, including Montreal-based inscora. More investments are expected to be revealed soon.

Want to know more? Check out the source code on Fintech.ca.