Financeit, a leading point-of-sale financing provider, today announced a new round of equity financing led by new investors--Pritzker family business interests advised by The Pritzker Organization, L.L.C. ("TPO") and DNS Capital, LLC ("DNS")-- as well as existing investors.
This investment round of $US17 million ($CAD22 million) enabled Financeit to fund the recently-announced acquisition of TD Bank Group's indirect home improvement financing assets, which included the purchase of more than 800 merchant dealer agreements and the transition of a number of former TD relationship managers and operational staff. After a transition period, the transaction will also lead to Financeit servicing approximately 45,000 existing TD consumer loans.
The capital raise, which follows the close of a minority equity financing round led by Goldman Sachs in October 2015 , will also support the ongoing needs of the company as it continues its rapid growth.
"This new investment demonstrates the strong confidence of the investment community in our market plans and our unique solution for North America's expansive point-of-sale financing industry," says Michael Garrity , Founder and CEO, Financeit. "As more merchants embrace the benefits of offering cloud and mobile-based financing options to their customers, Financeit expects to increase its sizable signature in this market. We continue to focus on innovation for our merchant partners and market growth through both organic tactics and acquisition."
Financeit has increased its lending activity in the home improvement industry by almost 200 per cent since 2015.