Ario, an Ottawa-based digital banking platform built for enterprises, has secured a $10 million investment.
The source of the financing was Purpose Financial LP, a Canadian financial services firm led by CEO Som Seif and backed by OMERS Platform Investments.
Founded last year and led by CEO Avinash Chidambaram, Ario helps enterprise partners provide their customers with automated, contextual and real-time financial solutions managed through machine learning systems.
The investment’s proceeds will allow the company to further develop and launch its solutions.
Ario Secures $10-million Investment from Purpose Financial to Expand Small Business Banking as a Service Infrastructure
TORONTO, Nov. 13, 2018 /CNW/ – Ario (“the company”) is pleased to announce a $10-million investment from Purpose Financial LP to expand its innovative banking-as-a-service technology platform supporting small- and medium-sized enterprises. The company will use the investment to launch its white-label digital lending solutions and account management services. The funding will also allow Ario to expand into card issuance and cash management for SME loans, to give enterprise clients the ability to offer financial services to their own customers.
The Ario platform uses proprietary data and algorithms based on machine learning to offer cost-efficient digital lending with a depth of knowledge not available from traditional financiers. In addition, Ario has uniquely secured access to a strong and deep balance sheet to ensure its partners can offer these financial services products without using their own capital.
“The Ario digital-lending platform was developed to provide digital automated banking solutions for SMEs, a typically underserved segment of the North American financial market. We’re supporting incumbent financial firms, technology companies and non-financial firms to enable them to provide easy financing solutions and broader financial products to their clients,” said Avinash Chidambaram, CEO of Ario.
The Ario platform is being used to power the Bill Market solution, which offers invoice-financing options to expedite payment terms between suppliers and their customers. Bill Market is a collaboration between Equifax Inc. and Thinking Capital Financial Corporation, which is wholly owned by Purpose Financial.
“Small businesses require many different forms of financing to run and grow their businesses and these customers are currently significantly underserved by the market. Small business owners are digitally savvy and expect integrated experiences that allow them to focus on their business instead of worrying about money. That includes, for example instant and mobile access to working capital to fund new equipment or tie over payrolls. This investment from Purpose will allow us to continue to develop and offer digital solutions to support the industry and meet the needs of the modern small business,” said Chidambaram.
Ario is a data driven banking and lending solutions provider built to enable enterprise partners to offer financial solutions to their customers. The company is focused on helping enterprises overcome one of the biggest barriers to success, access to working capital. Ario’s software-as-a-service platform provides existing banks, credit unions, technology companies and non-financial services companies a white-label platform without the burden of expensive infrastructure and at a fraction of the cost of traditional platforms. Ario integrates directly with enterprises to give them turnkey financing solutions to offer for their clients, opening new revenue streams and unlocking new customers for this underserved market. Ario was founded in 2017 and has offices in Toronto and Ottawa.
About Purpose Financial
Purpose Financial is an independent financial services company with an unrelenting focus on customer-centric innovation, delivered through technology-driven solutions. Led by entrepreneur Som Seif, the company is developing a diversified product platform aimed at addressing historically underserved segments of the market. Purpose Financial’s businesses includes Purpose Investments, Purpose Advisor Solutions, Purpose Banking Technology Solutions, which includes Thinking Capital Financial Corporation and Ario, and Purpose Strategy & Innovations Labs, its Fintech innovations group.
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