Mylo Financial Technologies, a Montreal-based financial technology (fintech) startup, on Tuesday announced it has raised $1.25 million from venture and angel investors, led by Montreal's Ferst Capital Partners (FCP).
Mylo initially raised $500,000 from FCP in January 2016, and has since raised an additional $750,000, closing its pre-seed round this month.
Mylo's app promises to help users invest by rounding up every purchase they make through their bank accounts or credit cards that are linked to the app and investing the balance. So, for example, if a customer purchases a coffee for $2.50, the purchase would be rounded up to $3, with the app collecting 50¢ and investing it in a portfolio of exchange-traded funds through Montreal-based Tactex Asset Management. In addition to the investing model, the app also promises to use artificial intelligence to provide users with personal finance recommendations.
The company launched a beta version of the app on the iOS platform in February, and says that it is in the process of onboarding the 11,000 potential users on its waiting list. It plans to launch an Android version of the app later this year.
The venture financing will be used to "grow its technical and operations teams, expand its user base and complete the acquisition of a registered asset management firm," Mylo says in a news release.
"Mylo is solving a fundamental problem and providing financial inclusion through a complete re-imagination of what the future of personal finance management will be," says Jay Ferst, managing partner, Ferst Capital Partners, in a statement.