We’ve been noticing this year that financial technology startups are commonly among the fastest-growing firms in Canada.
For example, 20% of Deloitte Canada’s Technology Fast 50 for 2024 is comprised of fintechs.
It’s not just Bay Street either. Indeed, the fintech momentum is nationwide. To wit: Calgary’s Neo Financial claimed the top spot in Report on Business magazine’s annual ranking of Canada’s Top Growing Companies for 2024 with three-year revenue growth of 38,000%.
This week, Propel Holdings (which made Deloitte’s “Enterprise” list) reported quarterly earnings, adding to the wave.
Founded in 2011, Propel offers a lending-as-a-service-platform and went public in 2021. Employing proprietary AI that analyzes thousands of data points per second, Propel matches users with tailored financial products and has so far facilitated over one million loans and more than one billion dollars in credit.
Quarterly revenue rose 41% for Propel to $117 million with the Canadian fintech turning a profit. Indeed, financials were strong enough that Propel announced an 8% boost to its dividend.
“Building on a record first half of fiscal year 2024, we are proud to deliver another quarter of record results in Q3,” stated cofounder Clive Kinross, citing achievements such as a key partnership with fellow Canadian fintech KOHO.
The success of Propel is reflected in Kinross recently earning 2024’s EY Entrepreneur Of The Year 2024 Ontario title.
“Clive has driven Propel to the forefront of the fintech industry with his forward-thinking approach and steadfast dedication to financial empowerment,” stated Stephanie Lamont, EY Entrepreneur Of The Year Ontario Program Co-Director. “His strategic use of AI technology is revolutionizing credit access, demonstrating a perfect blend of cutting-edge solutions and a profound understanding of consumer needs.”
As the Ontario region’s EY Entrepreneur Of The Year 2024, Kinross will next compete with winners from the Pacific, Prairies, Québec, and Atlantic regions for the national honour of Canada’s EY Entrepreneur Of The Year 2024, which will be presented at a celebration on November 26 in Toronto.
But Kinross has more pressing concerns to consider, such as the future fate of his firm.
“Propel is at an exciting inflection point,” he believes.
The fintech is on a path toward becoming a global leader in the space, according to the CEO, who says Propel’s three growth objectives have been geographic expansion, serving more consumers across the credit spectrum, and strategic acquisitions.
“We have delivered on all three,” he says, before adding that “There is still much more to come as we aim to become a global leader.”
Shares in the company are up nearly 400% over the past year.
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