Thinking Capital Financial, a small business loans subsidiary of financial services firm Purpose Financial, has paid an undisclosed sum to acquire the latter’s portfolio company, Canada-based credit processing software developer Ario.
Ario’s software platform allows its financial services clients to provide small businesses with a range of financing products through a machine learning-driven app.
Users receive an allowance based on their credit score that can then be used to pay suppliers, and can also apply for an additional advance to cover working capital requirements. Thinking Capital’s parent company had supplied Ario with $10m of funding in late 2018.
The acquisition is expected to help extend Thinking Capital’s support for small businesses during covid-19, building on an existing collaboration with Ario focused on invoice financing products also supported by credit scoring agency Equifax.