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FinTech firm Mogo Inc. (TSX:MOGO) is acquiring 100 per cent stake in Moka Financial Technologies Inc., a Canada-based saving and investing digital platform. Following the announcement on Tuesday March 23, the stock rose over 3.57 per cent.
This proposed transaction will grow Mogo’s user base by more than 40 per cent to approximately 1.7 million and boost Mogo’s wealth management operations, including investing and saving products. On top of that, the digital wallet firm expects to launch a stock trading platform for Canadian investors.
Both tech-backed financial companies anticipate concluding a definitive agreement and complete the transaction in the second quarter of 2021.
In December 2020, the company invested C$ 1.5 million in the world’s strongest crypto coin, bitcoin. In the fourth quarter of 2020, the company reported that its crypto holding surged by 94 per cent year-over-year (YoY) to 18 bitcoins.
Bitcoin has returned almost 94.50 per cent this year, driven by institutional investors and growing mainstream acceptance. Global digital payments companies have also been capitalizing on the ongoing crypto frenzy.
Mogo had total 1,126,000 members on its platform as of December 31, 2020, an increase of 15 per cent YoY.
Let us delve into this emerging mortgage loan company’s stock performance:
Mogo Inc. (TSX:MOGO)
The digital app’s stock price has soared 175.61 per cent year-to-date (YTD), guided by the rising digital transaction and cryptocurrency’s bull-run. Its market cap has grown multiple folds to C$ 690.51 million in one year. Its current share price is C$ 13.34.
It has skyrocketed over 1,488 per cent in the past one year, outperforming the S&P TSX Diversified Financials (Industry Group) Index that has risen 805 per cent relatively. The stock achieved its 52-week high of C$ 15.34 per common share on March 19.
In the fourth quarter of 2020, the firm posted an adjusted EBITDA of C$ 11.6 million, up against C$ 4.8 million in the third quarter of 2020.
The company raised nearly C$ 81.6 million gross proceeds between December 2020 and February 2021.
Mogo's One-Year Stock Performance Chart. (Source: EODHD/Others)
Mogo’s Outlook For 2020
The company expects continuous surge in its memberships in 2021. That will enhance its revenue growth from subscription and services this year.
Mogo projects subscription and services revenue growth in the range of 80 per cent to 100 per cent on a year-over-year basis at the end of 2021.
