Difference Capital adds to Mogo Finance Technology position

Fresh off a win from its investment into Vena Solutions, Difference Capital is adding to its position into Vancouver-based fintech player Mogo Finance Technology (Mogo Stock Quote, Chart TSX:MOGO).

Difference on February 1 purchased 100,000 shares of Mogo in the market at $3.00, adding to recent buys from other insiders, including President Greg Feller and CEO David Feller.

In January, DCF monetized a portion of its Vena common share holdings, bringing its cash position to to approximately $13.4-million, up from just $200K on September 30th of last year. Vena on January 9th announced a financing of $115-million from JMI Equity. On paper, Vena’s new valuation means a return of about 4x for Difference.

“Vena is a highly successful innovator in the financial planning and analysis software sector,” Tom Liston, Chief Investment Officer of Difference Capital said. “Today’s announcement, a significant investment by two top-tier growth equity firms, serves as validation of the company’s growth potential and strong management team. We are proud to have financed Vena with their first significant investment five years ago.”

Difference Capital’s investment in Vena goes back to November of 2013 when it invested $3.0-million in unsecured convertible debt into the firm, which specializes in mission critical finance and accounting software.

Difference now owns more 2.5 million shares of Mogo, which has 22.99-million shares outstanding.

Mogo appears to be gaining momentum. The company in January announced it had added 210,000 new member accounts in 2018, bringing its member base to 756,000.

By way of comparison, RBC CEO Dave McKay recently said the chartered bank opened 300,000 new accounts in 2018.

“We are driven to help Canadians get in better control of their financial health through our mobile-first platform and growing suite of products,” David Feller said of the growth recently. “Our account base is growing quickly, and we expect this to continue through 2019 as we add new products and features – all within one app that is designed to provide a best-in-class digital experience.”

Disclosure: Mogo is an annual sponsor of Cantech Letter