Caary Capital, a Toronto-based fintech targeting SMEs, has raised C$4.1 million in a late-seed equity round.
Around 150 investors participated in the oversubscribed crowdfund for Caary and its digital credit and payments platform for SMEs in Canada.
The startup plans to launch its full platform in beta over the summer, offering same-day Mastercard credit card approval, no personal guarantee requirements, and near-instant virtual issuance.
Caary says it has developed a model for assessing and offering credit to SMEs based on cash-flow and assets as opposed to credit history.
The company will use the funding to expand the product suite, add functionality, support the go-to-market strategy, and build internal capacity to onboard and support new customers.
John MacKinlay, CEO, Caary, says: "In Canada alone there are more than 1.2 million SMEs and yet it’s rare for them to have corporate credit cards. Employees and founders are putting large sums on their personal credit cards, which exposes them to personal liability, among other risks, and creates enormous time burden and inefficiencies when it comes to month-end reconciliation.
"This isn’t by choice - it’s currently extremely difficult for SMEs in Canada to get corporate credit. But, it doesn’t have to be that way."