CLC Network Closes Oversubscribed $9M Series A Round
Led by Gravitas Securities, leading Canadian mortgage network closes heavily oversubscribed Series A round as it looks to shake up a traditional industry
TORONTO, May 12, 2021 /CNW/ - CLC Network Inc. (CLC Network) a Canadian mortgage technology company and leading innovator in the industry, is pleased to announce that it has closed an oversubscribed $9M Series A financing round far exceeding its original $7M target. Gravitas Securities Inc. acted as the sole lead agent and exclusive financial advisor for the financing, putting together a robust virtual roadshow culminating in a strong strategic shareholder base. With a sophisticated core technology and a rapidly growing broker base, this injection of funds generated through the investment round will be focused on strategically developing the brand, accelerating the growth of new agents and amplifying the support for existing brokers and brokerages.
"We are very excited by today's announcement - simply put, we are ready to make waves in the mortgage world in the months and years to come," said Shubha Dasgupta, Founder and CEO of the CLC Network. "We will be leaning into some big changes in order to better serve home buyers, while also keeping our people at the heart of our business. Our brokers can count on continuing to have best in class tools that allows them to execute their jobs effectively and efficiently - while also being part of a brand they can be proud of."
CLC Network is founded by CEO Shubha Dasgupta, a longtime entrepreneur, leading mortgage executive and formerly amongst Canada's top mortgage brokers, COO Kendall Marin, a former corporate director for Canada's top telecom company and Principal Mortgage Broker, and Chairman Drew Green, one of Canada's leading technology entrepreneurs, founding companies such as SHOP.CA (acquired by EMERGE Commerce (TSXV: ECOM)), EMERGE Commerce, Apollo Exchange, Brüush Oral Care Inc.,Yourika, Emerald, Parvis Invest, &OR Collective, Riverdale Rentals, and Gravitas II Capital Corp. among others.
"CLC Network is gearing up for some incredible innovation and growth in their industry and backed by a strong leadership team - making them a very attractive opportunity for investors," said Kia Besharat, Senior Managing Director & Head of Capital Markets Origination at Gravitas Securities.
Since inception, CLC Network followed its guiding ethos of high growth innovation driven by profitability. Net income positive from day one, CLC Network has seen tremendous growth over the past four years including an over 200% increase in revenue and 100% increase in funded mortgage volume for its 2020 fiscal year. At the core of this success is both CLC Network's sharp focus on people (including brokers and borrowers) and innovation via the company's proprietary AI-driven Client Relationship Management (CRM) platform. By leveraging technology to create the first full-circle experience for brokers and a more personalized experience for clients, CLC Network delivers an improved mortgage experience for all. Looking to the future, CLC Network's leadership is strategically focused on expanding the company's business into new places.
CLC Network is Canada's first data driven mortgage company, harnessing the power of information by strategically utilizing it to make the mortgage process more efficient and effective for mortgage brokers and borrowers. This key differentiator has allowed the team to dive into innovation and growth while also keeping people at the forefront of the business. Last year alone, the CLC Network was able to use data to help Canadians save over $2M in interest costs and this year, the company has discovered exponential additional customer service opportunities that benefit consumers and allow CLC Network's mortgage brokers to solidify their relationships and value. Key to the CLC Network's success has been placing brokers and homeowners at the core of its business. CLC Network's CRM platform is touted by its users as the most sophisticated CRM system in the mortgage industry. Today, the technology is backed by 350 of Canada's top brokers (99% adoption rate), who are key stakeholders in its development, refinement and roadmap for new functionalities.
"This support from investors and the Canadian capital markets on the heels of a challenging year is very humbling," expressed Drew Green, Founder and Chairman of CLC Network. "Shubha, Kendall and their team are focused on creating a movement in the mortgage industry that is disruptive to the traditional players in the market, while keeping its people and home buyers at the heart of their business. We are very excited for what's to come."
About The CLC Network
The CLC Network is a leader in the Canadian mortgage industry, breaking the mold by focusing on both the long-term success of brokers and the overall experience of the homeowner. With over 350 brokers within the network, CLC Network utilizes cutting edge cloud-based tools and intelligent AI-driven systems to enable its brokers to help Canadians realize their ultimate dream, owning a home. The CLC Network is active within the community and a proud sponsor of the Canadian Cancer Society, where proceeds from every transaction goes to improving the lives of fellow Canadians touched by cancer. Visit www.clcnetwork.ca for more information.
About Gravitas Securities Inc.
Gravitas Securities Inc. ("GSI") is a leading full-service investment dealer providing independent, customized and tailored investment banking solutions with a specialization towards growth-stage companies from offices in Toronto and Vancouver. The firm's dedication and expertise across multiple leading-edge industries offers clients unique market insight as they execute on their strategy to enhance shareholder value. GSI also provides private client wealth management services committed to adding measurable value to clients, meeting their individual investment needs. GSI is a member of the Investment Industry Regulatory Organization of Canada (IIROC), a Participating Organization of the TSX Venture Exchange and a member of the Canadian Investor Protection Fund (CIPF).
SOURCE CLC Network
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