Bloom Announces Closing of $7M Series A Financing
Canadian fintech's focus on simplicity and CX driving market share gains in Canadian home equity release
TORONTO, May 16, 2023 /CNW/ - Bloom Finance Company Ltd. ("Bloom") today announced the closing of a $7M Series A financing, led by SixThirty Ventures LLC ("SixThirty").
Bloom is a Canadian fintech that offers home equity release solutions to 55+ homeowners, enabling them to tap into the wealth they've built in their homes to help finance their costs of living in retirement. The company has been growing rapidly since its launch of operations in late 2021, extending nearly $100 million to homeowners in Ontario and British Columbia to date.
"Four out of five Canadian seniors live with financial insecurity, with income and savings that aren't sufficient to maintain their pre-retirement living standard", said Ben McCabe, CEO of Bloom. "At the same time, the magnitude of home price growth over the past few decades means there is often more than enough household wealth to sustain a comfortable retirement, for most retiring homeowners."
Bloom has been gaining market share in the traditionally bank-dominated reverse mortgage industry, propelled by its intense focus on leveraging technology to offer the simplest and most transparent equity access solutions for clients, their mortgage brokers and financial advisors. The fintech believes that equity release will become an increasingly mainstream part of retirement planning, and that unlocking equity in a sustainable way will be the key to greater adoption.
"For an ageing demographic that has generally under-saved, home equity release represents a powerful, supplemental income solution," shared Atul Kamra, SixThirty's Managing Partner & Bloom board director. "Bloom's funding partnerships and rapid growth are proof positive of the market demand. But what caught our attention is Bloom's values and its positioning. We share the view that home equity release is part of the overall wealth decumulation journey, and it starts with closing a vast, unmet need for income advice."
Bloom will use the new funding to accelerate its investments in product and process innovation, and continue its geographic expansion.
"The traditional reverse mortgage is a powerful solution for a broad cross section of homeowners, in a wide variety of financial circumstances", added McCabe. "However, it's not the last word on equity release. We plan to continue widening the definition of who equity release is for, and how it can be responsibly delivered."
Bloom is a Canadian fintech that helps 55+ homeowners access the wealth they've built in their homes to live more comfortable lives in retirement. Leveraging technology and innovation in product delivery, the company is modernizing home equity access to make it flexible, sustainable and simple. Bloom's mission is to help retired homeowners eliminate financial anxiety, in what should be the springtime of their lives. Licensed in ON:13338 and BC:MB600455. Learn more at www.bloomfin.ca
SixThirty is a global venture capital firm that invests in early-stage companies at the intersection of finance, health, and privacy. Its platform brings start-ups and incumbents together to collaborate, creating a force multiplier for both. SixThirty's limited partners are category leading incumbents from across financial services, insurance, healthcare, and enterprise technology.
SOURCE Bloom Finance Company Ltd.
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