Helcim Raises $38 Million to Fill Small Business Banking Void

Helcim, a payments company catering to Canadian small and medium-sized businesses, has secured $38 million in fresh funding. The Calgary-based startup’s Series C round will enable Helcim to bolster its platform at a time when major Canadian banks are divesting or outsourcing their merchant services operations. Founder and CEO Nic Beique highlighted a "real void in the market" as merchants are increasingly seeking a modern alternative to traditional providers.

To capitalize on this trend, Helicim plans to expand its platform, workforce, and engage with up-market businesses that outgrow its current offerings. Furthermore, the company is forging partnerships with regional banks and credit unions that are transitioning away from conventional payment providers in pursuit of a contemporary payments platform for their small business clientele.

Credit unions, in particular, must continually enhance their product offerings for small business members to stay relevant, compete, and retain deposits, as stated by Nick Evens, president and CEO of Curql, an investor in the round. Research from PYMNTS Intelligence and Velera reveals that 75% of SMBs anticipate utilizing at least one AI feature from their financial institution within the next two years.

Among businesses generating over $1 million annually, this figure rises to 83%. However, SMB demand for AI isn't centered around autonomous agents handling money, product selection, or decision-making without human intervention. Instead, business owners prioritize tools that aid in understanding their financial position, reducing administrative complexity, and making better decisions.

Credit unions can adopt a more practical AI strategy by starting with advisory tools that empower members before tackling more automated banking solutions. When inquired about their preferences, SMBs' priorities mainly revolve around AI-powered expense tracking (31%) and assistance with budgeting, cash-flow management, supplier discovery, and financial-product comparisons (22%).

These demands are rooted in the financial guidance that business owners anticipate from a trusted banking relationship, rather than lofty aspirations.