VICTORIA, January 20, 2021 – Peloton Technologies, a fintech company headquartered in Victoria, B.C., has secured $500,000 in new funding in order to grow its client base as small and medium-sized businesses shift their banking online because of COVID-19. Of this amount, $350,000 comes as non-dilutive financing from BDC’s Technology Industry Team, with the balance made up of a new equity raise from existing shareholders.
Peloton has developed a SaaS-based platform that enables businesses to streamline financial operations and make managing money easier. It includes the ability for businesses to organize and rapidly process all their financial transactions in one place and to receive comprehensive information in real time to better manage their cash flow, however many banking institutions they hold accounts with.
While largely bootstrapped since its foundation, the company has succeeded in attracting over 800 small and medium-sized business clients to date in Canada and the United States and in processing more than $1 billion. Recently, Peloton launched a new phase of growth in which it actively seeks to expand on both sides of the border. With the COVID-19 pandemic, the company has noted a boost in demand from businesses for solutions that can facilitate their online payments and banking transactions without the need to visit their local bank branches to conduct business.
This new financing is contributing to Peloton’s expansion plans by helping fund its marketing and sales push, which includes the hiring of new business development personnel. BDC’s portion comes in the form of a working capital loan tailored for growing early-stage technology businesses like Peloton and includes a one-year principal postponement to give the company time to realize the value of its initiatives.
“Our goal is to bring payments innovation to all businesses, no matter their size. By combining payment services from fragmented industries, we are providing solutions that are not found in today’s archaic banking platforms,” says Craig Attiwill, CEO and Founder of Peloton Technologies. “Looking into 2021, I am excited to ramp up the marketing of our technology and continue to grow alongside our customers with this support from BDC.”
This transaction was led by Kaylan Pepin, Senior Account Manager with BDC’s Technology Industry Team in British Columbia. “More and more small and medium-sized businesses are turning to Peloton’s solution to help them efficiently manage their payments and multiple bank accounts as they social distance,” says Pepin. “Much of the company’s growth to date has been organic. Now that it has demonstrated product-market fit, Peloton is ready to accelerate the onboarding of new clients, which is where this financing comes into play.”
About Peloton Technologies
Since 2010, Peloton Technologies has been providing solutions to streamline financial operations and make managing money easier. Their scalable and secure SaaS platform brings small and medium-sized businesses financial transaction management capabilities traditionally reserved for larger, more complex organizations. To date, the Peloton Technologies SaaS offering alone has processed more than 1 billion dollars. For more information visit peloton-technologies.com.
About BDC
BDC is the bank for Canadian entrepreneurs. It provides access to financing, as well as advisory services to help Canadian businesses grow and succeed. Its investment arm, BDC Capital, offers a wide range of risk capital solutions. For more than 75 years, BDC’s only purpose has been to support entrepreneurs in all industries and at all stages of growth. For more information and to consult more than 1,000 free tools, articles and entrepreneurs’ stories, visit bdc.ca.
Source: BDC, January 2021