Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

Tuesday, March 23, 2021, Mogo; a major player in the FinTech industry announced that they have entered into a binding letter of intent to acquire  100% of Moka Financial Technologies Inc. The acquisition of Moka; an innovative saving and investing app, will allow Mogo to enter the $4+Trillion dollar Canadian wealth management industry. This $64 million deal is expected to come to a definitive agreement and close in Q2 2021.

Who is Mogo?

Mogo is a financial technology company established in 2015. It offers innovative ways to manage, borrow, and invest money. Their goal is to help Canadians gain control over their finances so that they can make better financial decisions. In fact, Mogo is already trusted by over a million members. Mogo Members are able to gain access to the Mogo digital spending account where they can track their Mogo Visa* Platinum Prepaid Card and invest in bitcoin. Members can also monitor their credit score for free, and opt for services like identity theft protection and personal loans.

Who is Moka?

Moka is a Montreal-based company that has been growing exponentially since 2017. Since its inception, it has expanded to France and its app has been downloaded by over 1 million users. Moka is a fintech company with a social mission to help empower Canadians by making it easier to gain financial control. The Moka app works by rounding up your daily transactions and then using that spare change to invest. While you can’t invest in individual stocks, Moka simplifies the process by automating everything and invests your spare change in low-cost ETFs. Users can invest through a TSFA, RRSP, or a non-registered account. With no minimum investment requirements and a fully automated system, Canadians with little financial knowledge can start saving and investing easily using Moka.  

More on The Agreement

Mogo will be acquiring Moka in a 64 million all-stock deal. As part of the deal, Mogo will be purchasing all of Moka’s issued and outstanding shares, while Moka will take hold of 5 million Mogo common shares. Moreover, Mogo will assume net debt of 3 million as part of the agreement. More details will be hashed out as the closing transaction date draws near. 

Why is Mogo Acquiring Moka? 

The acquisition of Moka is a strategic horizontal integration of two businesses. Typically, when this happens, the motive behind it includes economies of scale, increased market share, and greater product or company differentiation. In Mogo’s case, we can see a clear increase in market share and product differentiation. 

Increased Market Share

There are many players in the fintech industry, from major giants to company start-ups and gaining market share can be difficult. But with Mogo’s acquisition of Moka, Mogo’s member base is expected to increase by over 40%. According to the press release, this increase will “accelerate the growth of [their] subscription & transaction-based revenue”. Which in turn, will let Mogo gain market share in the $4+ trillion wealth management industry. Moreover, the acquisition provides them with the ability to expand their services to Quebec, furthering their goals of gaining market share. 

Increased Differentiation 

Company or product differentiation is a major competitive advantage for most businesses. With the acquisition of Moka, Mogo will be able to offer its members more products, tools, and features that can help reach their financial goals. 

By leveraging Moka’s investing platform, Mogo will gain access to “over $250 million of AUM along with registered portfolio management capabilities throughout Canada & Europe” which will help Mogo form the core of MogoWealth. 

Moreover, Moka’s innovative saving and investing app particularly compliments Mogo’s existing service Mogo Crypto; which is an account that allows users to invest in bitcoin. Thanks to Moka’s technology, Mogo will be able to accelerate its plan to “launch a free stock trading solution for Canadians”. 

New Shareholders

Along with Moka, the purchase of Moka will bring in new shareholders for Mogo, including:

  • Desjardins Capital
  • National Bank of Canada
  • Ferst Capital Partners

To top it off Philip Barrar; founder & CEO of Moka and Dr. Liam Cheung; Moka’s chairman and partners will be joining Mogo’s team. Mr.Barrar is expected to join as the Chief Innovation Officer while Dr.Cheung will join Mogo’s board of directors. 

Priyanka Correia, BComm avatar on Loans Canada
Priyanka Correia, BComm

Priyanka Correia is a Marketing Coordinator and personal finance expert at Loans Canada. Priyanka completed her Bachelor's degree in Marketing at Concordia University and has published work that has been mentioned in various news media. She is passionate about money management and educating Canadian consumers about how to take control of their financial lives.

More From This Author

Special Offers

More From Our Experts
Porting A Mortgage | What Does It Mean?

By Bryan Daly
Published on June 11, 2024

Everything you need to know about porting your mortgage and when it's actually a good idea.
Deed In Lieu Of Foreclosure In Canada: An Alternative To Foreclosure

By Lisa Rennie

A deed in lieu of foreclosure is when you agree to voluntarily hand over the deed to your home to the lender instead of going through a foreclosure.
Pros And Cons Of Buying A House vs Buying A Condo

By Lisa Rennie

What are some of the disadvantages and advantages of buying a house or a condo?
What Is The Moi Program?

By Savanna Craig

Are you wondering if the Moi program is worth it? Find how much Moi points are worth and where you can earn them.
The Costs Of Owning A Home In Ontario

By Lisa Rennie

Wondering how much it costs to own a home? Let's look beyond mortgage closing costs and analyze exactly are the monthly costs of owning a house in Ont...
When Is The Best Time To Buy A House?

By Lisa Rennie

Learn how to determine whether or not it's a good time to purchase a house.
What Is A Power Of Sale For A Mortgage?

By Jessica Martel

A power of sale essentially allows the lender - not the homeowner - to sell the home if the borrower defaults on the mortgage.
Do You Qualify For Disability Assistance In BC?

By Matthew Taylor

The BC Disability Assistance Program provides monthly disability assistance payments to people with the Persons with Disabilities (PWD) Designation.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Expert Tips
And Advice

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card