Loop was originally conceived in Canada in 2015 as a financing provider but by 2022 had pivoted to a solution targeting pain points faced by small- and medium-sized businesses seeking to grow operations.
The team behind the startup found that banking fees and cumbersome processes to move money are battering finance teams. “The reality is, Canadian businesses are underbanked,” the founders say.
Loop therefore reiterated to lower friction for companies by offering a single platform to manage international finances as well as simplify cross-border payments, currency exchange, and treasury management.
Today, the Toronto-based fintech announced a recent $6.4 million round of funding.
The round—powered by Luge Capital, Graphite Ventures, Conconi Growth Partners, Mistral Ventures, Wedbush Ventures, and Web Ventures—builds on an earlier raise of $4M in 2022 and brings the startup’s total fundraising to more than $10M.
“It’s a challenge for small businesses that expand internationally to find a true banking partner that can serve their needs in multiple geographies and currencies,” commented David Nault, General Partner at Luge. “Loop’s platform perfectly serves the needs of those businesses and is well positioned to capture this growing opportunity.”
“Although most US and Canadian exporters are SMBs, they are grossly underserved by the large banks, especially in cross-border banking,” added Raif Barbaros, Partner at Mistral Venture Partners. “Loop’s innovative platform is unlocking global growth opportunities for these businesses.”
Loop intends to apply its funding primarily toward international expansion, as well as improving its product, according to cofounder Cato Pastoll, as cross-border trade continues to grow in Canada.
“Modern companies are built to operate globally, yet the process of setting up banking services to conduct business in a foreign market in order to send, receive and manage money is an expensive and challenging barrier to overcome for businesses,” said Pastoll, who serves Loop as chief executive.
“We’re excited to take the next step forward on our mission to help businesses grow faster globally by providing them with the key tools required to manage their money internationally,” the CEO stated. “With the support from our investors, Loop will be able to move even faster on our mission to build a financial services offering that is truly global-by-default.”
Currently, thousands of Canadian businesses use Loop to manage their global payments.
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