Purpose LP (Purpose Financial) has revealed that it has received a $53.3 million minority investment from the Allianz Group.
Allianz Group made the investment through its digital investments unit, Allianz X. The transaction is subject to regulatory approval.
According to Purpose Financial, the investment from Allianz X will be used to accelerate its growth and expand product development. The fintech also said that the transaction will be the first step in a “strategic cooperation” between Purpose Financial and Allianz, wherein both companies would leverage each other’s expertise and develop further partnership opportunities.
“We are excited to welcome Allianz X as an investor and partner in our business alongside our existing investors OMERS and TorQuest,” said Purpose Financial CEO Som Seif. “Our business has grown exponentially since founding in 2013 and we are still in the early stages of our journey to innovate within the financial services industry.”
Purpose Financial is concentrated on innovating three areas of its business: Purpose Investments, a risk management-focused system that currently manages over $10 billion in assets; Purpose Advisor Solutions, a platform that allows independent wealth advisors and portfolio managers to manage their business; and Thinking Capital, a small business financial platform that provides loans and business insights to SMEs.
“Purpose Financial is a disruptor in the Canadian financial services landscape, having established a unique position in its market, particularly with its digital platform for financial advisors,” commented Allianz X deal and project manager Alexander De Kegel. “The company is also well positioned for further growth in asset management and SME lending.”
