nesto raises $76M Series B to accelerate growth
Proprio Direct and nesto announce their partnership
MONTREAL, January 19, 2021 – Proprio Direct and the mortgage financing agency nesto are proud to announce their partnership.
Last spring, with the approaching of the implementation of Bill 141 governed by the Autorité des marchés financiers, faithful to its desire to constantly innovate, Proprio Direct set out to seek a distinctive mortgage financing offer. The company therefore launched a call for tenders to select a mortgage financing firm that would provide the best offer to its clients and brokers.
“We decided to go with nesto with whom we not only share a culture of innovation but also the desire to offer the very best to consumers. In addition to offering the best rates on the market, nesto has a nationwide presence to accompany us with our expansion. With their technology platform, which includes an algorithm that analyzes the entire mortgage offering in seconds, nesto revolutionizes a previously traditional industry, just like Proprio Direct does for real estate brokerage. As of today, Proprio Direct customers interested in financing, refinancing or renewing a mortgage will have access to the best rates in the Canadian market, as well as a unique, fully digital experience, allowing timely approval.” said Philippe Lecoq, President of Proprio Direct.
Malik Yacoubi, CEO of nesto mortgage financing agency, is also very pleased with this new partnership with Proprio Direct. “From the very beginnings of nesto in 2018 to the present day, our goal has always been the same: to simplify the mortgage process from start to finish. While the idea of a 100% digital experience like ours remained rather vague before 2020, it became essential at the end of this year. Partnering with a real estate pillar such as Proprio Direct is an opportunity to combine experience and technology to meet an increasing demand. Today’s buyers want more efficiency and flexibility, both in real estate and mortgages, and that’s exactly what we’re offering!”
In summary, this new partnership between Proprio Direct and nesto aims to offer Canadian customers the best of both worlds: the ability to sell or buy under the best possible conditions and obtain the best mortgage financing terms in the market.
About Proprio Direct
Founded in 1987, Proprio Direct is a real estate agency with close to 700 brokers serving all of Quebec. With its distinctive offering combining the support and expertise of a broker with the flexibility to find the buyer yourself, the company has managed to hold an enviable position and reputation in the Quebec market. In 2017, Proprio Direct became a subsidiary of Brookfield, a Canadian company with more than 19,000 brokers across the country, which are distributed within four of the largest and most recognized banners in Canada.
Founded in Montreal in 2018, nesto is the first 100% digital and 100% free mortgage solution in Canada. Powered by exclusive technology, its algorithm can scan the entire Canadian market in seconds to offer thousands of future buyers the choice of the best mortgage rate among many lenders each year. Present across Canada, its unique digital solution aims to revolutionize the mortgage industry by streamlining the process from start to finish.
nesto raises $11.5M Series A
nesto continues its growth in Canada
- $11.5M in financing from several partners, including Diagram and Investissement Québec
- A more than 700% increase in application volume compared to May 2019
- Attracting new talent
Montréal (Québec), June 2, 2020 — nesto, a young fintech company that aims to maximize the potential of using technology to analyze and find the best mortgage solutions for its clients, continues to grow at an accelerated pace across Canada. In addition to securing a new round of financing, nesto saw a significant increase in its business volume in May, at a time when the pandemic and gradual deconfinement encouraged Canadians to turn to technology for their mortgage-related needs.
Driven by a business model based on simplicity, nesto meets the borrowers’ need for clarity, the expectations of fintech investors, and changes in a market that has traditionally made little use of technology.
A successful new round of financing
Today, nesto announced it has secured a new round of financing worth $11.5M. Its main partners include Diagram, Investissement Québec – who is leading the Series A financing round, as well as a group of highly strategic investors.
“This new round of financing marks a turning point in nesto’s young history that will enable us to continue to deliver an outstanding experience to our clients as we invest in the evolution of our tools,” stated Malik Yacoubi, nesto cofounder and CEO. “We intend to transform the Canadian mortgage industry, and we are proud to have such renowned partners as Diagram and Investissement Québec on board to help us achieve our goals.”
“We are very happy to have witnessed and believed in nesto’s potential from the get-go. This new financial support will allow the company to speed up its growth and reach even more ambitious heights as it transforms the Canadian mortgage market,” stated Daniel Robichaud, managing partner at Diagram.
Significant increase in demand across the country
This announcement coincides with a 729% increase in demand for nesto’s services in May 2020 compared to the same period last year. This increase is fueled by the context of the pandemic, which has thrust the Canadian population into confinement, restricted people’s movements, and caused most human interactions to be carried over to virtual platforms.
“There is no doubt that a service such as nesto makes perfect sense at a time when a pandemic significantly limits people’s ability to get around,” continued Malik Yacoubi. “We provide sustained and personalized support to our clients and, thanks to technology, we can offer them better mortgage rates as well as all the information they need based on their situation.”
nesto’s mortgage rates are the lowest in the market as a result of its unique model that reduces commissions to a minimum to then pass these savings on to the clients. Clients have access to licensed mortgage agents and they take it upon themselves to submit the required documents via nesto’s digital platform, all at their own pace and convenience. They are constantly kept informed at each step throughout the process. Clients save time, avoid running around and reap significant savings.
nesto is a compelling example of the changing mortgage market and the growing collaboration between fintechs and financial institutions as it partners with some 20 of the leading Canadian lenders.
New talent joining the adventure
nesto’s business model is in fact a point of attraction for the best talent in the industry. In recent weeks, the company has had the pleasure of appointing Ms. Marie-Elaine Gaudreault as Vice-President of Lender Relations. Formerly the Vice-President of Mortgage Loans at Industrial Alliance, Marie-Elaine will strive to develop closer working relations with lending partners.
nesto is also delighted to welcome Mr. Greg Perowne as Senior Director of Operations. After holding development and operations management positions at Goodfood and Uber, Greg brings proven experience in managing high-growth companies that will be extremely useful in helping nesto achieve its objectives.
“I am very proud to see talent of such high caliber as Marie-Elaine and Greg join our start-up. We work in an industry that has taken little advantage of the technological advances in recent years. Purchasing property is one of the most important decisions people make in their lives and yet, clients still have to deal with a system that is opaque, complex and administratively cumbersome, not to mention the high commissions. That is why we exist: to democratize mortgage transactions and have a real impact on people’s lives… and their pocketbooks!”, concluded Mr. Yacoubi.
nesto is building the smartest & simplest mortgage solution to transform the $1.3 trillion Canadian mortgage industry. It aims to empower Canadians with the tools, advice and ultimately, the confidence required to make an educated decision about the largest financial commitment of their lives. By leveraging technology, nesto offers complete transparency on mortgage options available, allowing Canadians to select the best mortgage possible, while managing for them the complexity of the mortgage application. nesto’s mortgage professionals provide unparalleled support to fund their clients’ home purchase (as little, or as much as they need). Discover more at www.nesto.ca
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