TIMIA Capital Corporation's (CVE:TCA) (OTCMKTS:TIMCF) has said it is on track to provide more loans this year to help tech companies grow than it did in 2019, despite the challenges caused by the coronavirus pandemic.
In an update on the state of its portfolio and the group's plans for 2020, the fintech company said the year was off to a "great start".
READ: TIMIA Capital invests $2 million into Cova Software, a technology platform for designed for cannabis retailers
So far in 2020, TIMIA has disbursed C$4.4 million into three new companies, as well as putting C$1.8 million into existing investments.
"The total disbursements of $6.2M year to date put TIMIA on track to exceed the total disbursements of $13.1M in 2019" it said in a statement. From 2016 to the end of 2019, the group said it saw a 75% annual increase in loans disbursed.
The group provides growth capital to software firms in exchange for payments based on monthly revenue.
"We've built a strong foundation with our fintech platform and resources to fund growing companies in an underserved market. We'll continue to prudently manage our capital and portfolio of investments and provide updates on new transactions when complete," Mike Walkinshaw, CEO of Timia Capital told investors.
The firm said its portfolio had generally seen slowing growth in new customer sales but not significant declines in month-to-month existing subscription revenues, nor any defaults in its portfolio.
The company also said it continues to look at innovative and non-dilutive ways to increase its investment capacity, having successfully raised over C$18 million in the first Limited Partnership (LP) in 2019.
It has now started fundraising for the second LP, with over C$5 million in commitments received to date. This second LP is targeting a first close of C$10 million on or before June 30 this year. Notably, proceeds from the first close of the second LP combined with the current cash resources should enable TIMIA to increase its loan book to over C$35 million.
In May, the group announced a new C$2 million investment into Cova Software, an inventory management and point of sale platform to help streamline cannabis retail.
Contact the author at [email protected]