Follow the Money Friday: Clearco's $100M Gamble on 'Rescaling'

As BetaKit first reported, Clearco is betting that a leaner operational structure and a revamped funding model can steer it back to profitability. The Toronto-based fintech announced Tuesday it secured $100 million USD ($138.7 million CAD) via asset-backed debt financing provided by Macquarie Group, an investment firm based in Australia. According to BetaKit, this marks the company's first such financing in several years and is intended to provide capital to its base of roughly 400 e-commerce customers.

**The Pivot to 'Rescaling'** CEO Andrew Curtis told BetaKit that the company is currently "rescaling" following a series of turbulent years. The shift involves a fundamental change in how Clearco extracts value from its clients. While the firm previously took a percentage of revenue in exchange for funding, it has transitioned to a model of fixed weekly payments based on projected sales. Curtis noted that this approach helps customers better predict cash-flow needs and prevents them from paying more during high-volume weeks.

**A History of Contraction** The financial stakes are high given the company's trajectory. Founded in 2015 by Andrew D’Souza and Michele Romanow, Clearco once commanded a valuation exceeding $2 billion USD in 2021 after raising more than $400 million CAD in equity. However, BetaKit reports that deteriorating macroeconomic conditions in 2022 led to staff cuts, the abandonment of several international markets, and a reduced product suite.

Further instability hit in 2023. Following the collapse of Silicon Valley Bank, Clearco underwent a recapitalization, implemented more layoffs, changed its leadership, and raised $60 million USD in equity. Reporting cited by BetaKit indicates that Clearco's headcount has plummeted to 110—roughly one-fifth of its 2022 levels—though Curtis told BetaKit the current count is now just under 100 due to "streamlining."

**The Path to Profitability** Despite the downsizing, BetaKit notes that The Logic reported in December 2025 that Clearco was seeing growth, tripling its capital advances as traditional bank and VC funding dried up for entrepreneurs. Public filings show the company also raised over $7.5 million CAD in convertible promissory notes from existing investors this year.

From a markets perspective, the Macquarie Group facility is a critical lever for survival. Curtis told BetaKit that the cost of capital for this new facility is 50 percent lower than it was in 2023. By leveraging AI for efficiencies and focusing on lean operations, Clearco expects to reach break-even by the fourth quarter of this year.

*Opinion: Clearco is essentially attempting to build a sustainable business on the ruins of its hyper-growth era. While the $100 million infusion provides necessary runway, the real test is whether the fixed-payment model can generate enough reliable cash flow to offset the massive valuation collapse and operational shrinkage of the last three years.*