Canadian fintech company Mogo has agreed to acquire local saving and investing app Moka Financial Technologies to enter wealth management market.
The financial terms of the all-stock transaction, expected to close in the second quarter of the year, were not revealed.
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Montreal-based Moka has around $250m in AUM and registered portfolio management capabilities throughout Canada and in Europe.
The firm, which currently has over 500,000 active members and more than 100,000 monthly subscription members, generated around $6.5m in revenue last year.
It is known for its roundup feature, which automatically rounds up daily purchases and invests the spare change in personalised, diversified portfolios of low-cost Exchange-Traded Funds.
The deal is expected to ramp up Mogo’s member base by over 40% to over 1.7 million and expand its wealth offering to include saving and investing products.
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By GlobalDataAccording to Mogo president and CFO Greg Feller, the addition of Moka will also increase its total addressable market into the above $4 trillion wealth management business along with expansion into Quebec.
Mogo founder and CEO Philip Barrar remarked that Moka will complement the company’s current MogoCrypto account and form the core of its digital wallet MogoWealth.
Feller said: “Like Mogo, Moka is driven to help users improve their financial health, and they have built an innovative solution to enable consumers to easily save and invest money.
“By adding these digital saving and investing products – along with Moka’s technology platform and experienced fintech team – we will dramatically enhance what is already one of the most compelling and differentiated value propositions in Canadian finance.”
Moka founder and CEO Philip Barrar added: “We’re very excited to join Mogo, a fintech pioneer and one of Canada’s leading fintech companies.
“Moka has built a robust customer-centric technology platform and, as part of a larger, more diversified and well-capitalised digital platform, we enhance the opportunity to grow our business and, importantly, to give our members access to even more digital products and tools to improve their financial well-being.”
