The investment gives NowLake a 23% ownership position in the suburban Toronto-
based Axis, and bolsters NowLake’s plans to expand into Canada.
NowLake Group President Ian Anderson will be appointed to the Axis board.
Proceeds of the offering will be used to develop and roll out lending programs and for general corporate purposes.
“Our partnership has proven to be mutually beneficial, and we are excited to grow NowLake’s ownership stake in Axis,” Anderson said. “This is the next logical step to our expansion into Canada.”
Westlake Technology Holdings is an auto and finance technology company that provides financing through a nationwide network of new and used automotive dealers.
Nowcom Corp. develops technology solutions for the automotive and financial services sectors, including Westlake Technology Holdings, which boasts more than $15 billion in assets under management through its retail auto-lending arm Westlake Financial Services.
In February, Westlake shook things up with a restructuring to reflect its fintech roots. Westlake Technology and sister company, Nowcom Corp. joined to create the financial technology company NowLake Technology to act as a parent to the two older firms, which will remain as separate operating entities.
Car loans aren’t the only lending Westlake does. It also has seen burgeoning growth in the past few years by lending for consumer loans, credit cards, solar equipment and elective medical procedures.
In October, Westlake Financial Services, which hit a milestone of 1 million car loan accounts in early August, started working with Nova Credit Inc., a San Francisco-based fintech that helps immigrants build credit to buy a car.
Westlake also expects to begin offering small personal finance loans of $500 to $5,000 to consolidate debt by the end of 2021, the company said. The program, called Cash Now Pay Later, will be offered in short-term installments of a year or two through its LoanCenter business, which offers various secured loans.