Brim Financial has $85 million in fresh capital to help fund its growth in the U.S.

On Wednesday, the Toronto-based fintech company announced it had closed a Series C financing round, marking a bright spot in a startup sector that has faced a difficult fundraising environment.

The deal: Export Development Canada, a federal Crown corporation, led the round of investment, which included participation from Vancouver-based venture capital firm Vistara Growth. Several previous investors—Markham, Ont.-based White Owl Group and Utah firms Epic Ventures and Zions Bank—also bought in.

Though Brim spokesperson Sarah Ikalowych would not disclose the value the deal placed on the company, she said the investment was a “very significant up-round,” meaning Brim’s value has increased since the last time it secured funding.  It last raised capital in 2021, a $25-million round led by Epic Ventures and Desjardins Group. Desjardins did not participate in the latest round, said Ikalowych. 

Putting the money to work: Brim is licensed to issue credit cards, giving it a unique position among Canadian fintech firms. Its technology lets financial institutions and other fintechs issue personal and business credit cards to their clients, and helps them manage their credit card business. 

The company struck a partnership with Mastercard late last year to roll out credit card programs for its clients in the U.S. It now plans to double down on its business outside Canada. “This funding will accelerate Brim’s growth and fuel our international expansion,” Brim co-founder and CEO Rasha Katabi said in a press release. 

Breaking the ice: The deal is among the biggest for Canadian fintechs in the past two years, according to data from PitchBook. Fintechs, in particular, have struggled to raise funding and maintain headcount amid the broader tech-funding rout. The company said it was able to secure the funding because its revenue growth has been strong, its market share has increased and it has expanded into new business and commercial segments. The firm plans to “significantly ramp up hiring,” according to its press release.  

The open banking question: Fintech firms like Brim have been anticipating the federal government’s long-awaited open banking rules, now expected to be in place by the end of this year. Under the regulations, customers will be able to let certain fintechs access their financial data, which large banks will be required to provide. 

“The implementation of open banking in Canada will bring a structured framework of data availability that empowers consumers and businesses,” said Ikalowych. 

Brim is already working under open banking principles in the U.S. with its Mastercard deal. “U.S. companies are looking to provide their customers with a more seamless payment experience, while minimizing the resource challenges that come with relying on legacy providers or building and maintaining advanced technology in-house,” Katabi told The Logic in December.