Bloom Finance Company Ltd. recently announced the closing of a $7 million Series A financing, led by SixThirty Ventures. And Bloom is known as a Canadian fintech that offers home equity release solutions to over 55 homeowners, enabling them to tap into the wealth they’ve built in their homes to help finance their costs of living in retirement. Plus the company has been growing rapidly since its launch of operations in late 2021, extending nearly $100 million to homeowners in Ontario and British Columbia to date.
Bloom has been gaining market share in the traditionally bank-dominated reverse mortgage industry, which was propelled by its intense focus on utilizing technology to offer the simplest and most transparent equity access solutions for clients, their mortgage brokers and financial advisors. And the fintech believes that equity release will become an increasingly mainstream part of retirement planning, and that unlocking equity in a sustainable way will be the key to greater adoption.
Bloom plans to use the new funding round to accelerate its investments in product and process innovation and continue its geographic expansion.
KEY QUOTES:
“Four out of five Canadian seniors live with financial insecurity, with income and savings that aren’t sufficient to maintain their pre-retirement living standard. At the same time, the magnitude of home price growth over the past few decades means there is often more than enough household wealth to sustain a comfortable retirement, for most retiring homeowners.”
“The traditional reverse mortgage is a powerful solution for a broad cross-section of homeowners, in a wide variety of financial circumstances. However, it’s not the last word on equity release. We plan to continue widening the definition of who equity release is for, and how it can be responsibly delivered.”
— Ben McCabe, CEO of Bloom
“For an aging demographic that has generally under-saved, home equity release represents a powerful, supplemental income solution. Bloom’s funding partnerships and rapid growth are proof positive of the market demand. But what caught our attention is Bloom’s values and its positioning. We share the view that home equity release is part of the overall wealth decumulation journey, and it starts with closing a vast, unmet need for income advice.”
— Atul Kamra, SixThirty’s Managing Partner & Bloom board director
