Mobile Klinik, a Canadian chain of smartphone repair shops, has successfully closed an equity capital funding raise of $27.5 million.
The financing was led by a number of investment funds and includes a minority investment by the Canadian Business Growth Fund (CBGF), as well as private individuals, including several of the company's founders and early-stage investors. The investment brings total funding for Mobile Klinik to date to $44 million.
Mobile Klinik will use the $27.5 million funding to complete its planned rollout of 200 Canadian stores by 2022.
"We're committed to meeting Canadians' needs for professional, warrantied, while-you-wait smartphone and tablet repair, care, sales and service from coast-to-coast-to-coast," says Tim McGuire, CEO, Mobile Klinik. "This investment is a significant recognition of Mobile Klinik's leadership in the Canadian smartphone repair market and the growth we will achieve as we extend our network across the country."
The CBGF provides patient minority capital to ambitious Canadian entrepreneurs with talented management teams and solid expansion plans. The CBGF launched its $545 million fund in 2018, with the backing of 13 of Canada's largest financial institutions, focused on investments in established and high-growth Canadian businesses.
"Mobile Klinik represents the kind of Canadian business growth story that the CBGF was designed to support - a market-leading company with a significant potential for growth across the country," says George Rossolatos, CEO, CBGF. "We're proud to partner with the Mobile Klinik team in helping them execute their business plan which has the potential to create hundreds of new jobs in the Canadian retail technology sector."
Origin Merchant Securities Inc. acted as exclusive financial advisor and Cassels Brock & Blackwell LLP acted as legal counsel to Mobile Klinik on the financing.
Mobile Klinik Professional Smartphone Repair launched in September 2015 by four Canadian wireless and retail industry leaders: Rob Bruce, former president of the Rogers wireless and cable businesses; Ken Campbell, former CEO, WIND Mobile; and Alain Adam and Naaman Zorub, entrepreneurs who operate a number of wireless retail stores and other businesses in Ottawa and Gatineau.
Mobile Klinik operates locations in major shopping malls and other high-traffic retail locations. Today, the retailer opens its 50th location and its first store located inside a Walmart Supercentre. The Mobile Klinik store inside the Scarborough West Walmart in Toronto, ON is part of a multi-store roll out for Mobile Klinik locations inside select Walmart stores in Canada. More stores will open soon.
We spoke at length with Mobile Klinik, and other companies involved in the mobile device repair industry, in March. Check out our feature article, The Crazy World of Mobile Device Repairs: Behind the Scenes and Under Your Phones.