Globe & Mail 09:47 AM EDT, 03/23/2021 (MT Newswires) -- Mogo Inc. (NASDAQ:MOGO and TSX:MOGO), a digital wallet and payments company, was at last look up near 10% early on Tuesday after it reported Q4 2020 net loss improved to $2.8 million, compared to a loss of $6.2 million in Q4 2019. It said the improvement is driven by the reduction in operating expenses and reduced cash interest expense. But net loss and comprehensive loss was $13.4 million in 12 months ended December 31, 2020, compared to $10.8 million in the 12 ended December 31, 2019.
Among highlights, Mogo said Q4 2020 net member additions were up over 50% from Q3 2020.
Separately, Mogo on Tuesday also entered the $4-plus trillion Canadian wealth management industry with the acquisition of saving and investing app, Moka Financial Technologies Inc. It said the $64 million all-stock transaction will bring new Mogo shareholders including Desjardins Capital, National Bank of Canada and Ferst Capital Partners. This comes after it entered the $2.5 trillion global payments market with closing of the Carta acquisition.
"In 2020 and early 2021, we have taken strategic and financial steps that have fundamentally transformed the business and put us in an even stronger position to take advantage of accelerating adoption of digital wallets and financial health solutions," said David Feller, Mogo's Founder and CEO.
"The strong growth in our fourth-quarter net member additions reflect the early results of these efforts, in particular the increase in bitcoin accounts and trading, as well as increased transaction activity on MogoCard. To accelerate our strategy, we have completed the recent acquisition of Carta, which enhances Mogo's payments capability and gives us an important foothold in the fast-growing B2B payments market and have announced an investment in Coinsquare, Canada's premier cryptocurrency company which positions us to further expand Mogo's digital asset capabilities. With today's announcement of our agreement to acquire Moka, we will greatly expand our product capabilities and total addressable market in the $4-plus trillion wealth management industry. This will give us the most comprehensive consumer financial health app and digital wallet in Canada. Mogo has never been better positioned for growth across multiple product categories and geographies.
Added Greg Feller, President and CFO of Mogo: "We have also transformed our balance sheet and financial position through a series of important steps over the past 12 months.
"Since December 2020, we have raised close to $82 million in net new capital to support anticipated organic growth, as well as our acquisition strategy and strategic investments such as Carta and Coinsquare along with today's announcement regarding our agreement to acquire Moka. These transactions help accelerate Mogo's product roadmap and strategy as well as give us additional revenue scale, diversification, and position Mogo for accelerating subscription and services revenue growth in 2021 against a very favorable market backdrop for fintech."
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