Conexus Venture Capital backs JUDI.AI growth round

Conexus Venture Capital has led a growth funding round in Canadian fintech JUDI.AI, adding the company to its portfolio of credit union-focused technology businesses.

Vancouver-based JUDI.AI provides a cash-flow underwriting platform for small-business lending, used by credit unions and community banks in Canada and the US. Existing investor Unitus Community Credit Union in Oregon also participated in the round.

The companies did not disclose financial terms. The investment came from Conexus Venture Capital's CVC Fund #2, and the fund manager oversees AUD $60 million in assets across two funds.

JUDI.AI's software is designed to help lenders assess small-business borrowers using bank transaction data and a cash-flow model. Its platform has processed more than USD 2 billion in small-business loan applications and is used by more than 50 clients.

The deal deepens an existing relationship among the investor, the fintech and Conexus Credit Union. Conexus Credit Union was an early user of JUDI.AI's technology and is also an anchor limited partner in the venture fund.

According to the companies, small business members of Conexus Credit Union in Saskatchewan have already used the platform to secure faster loan decisions. Borrowers can apply for a loan and receive a decision within minutes rather than over several days, JUDI.AI said.

Growth plans

The new capital is intended to support JUDI.AI's expansion across North America and further product development. The company operates in a market where credit unions and community banks are looking for ways to speed up lending decisions for small businesses without relying on lengthy manual reviews.

JUDI.AI said it draws on a decade of performance data in its underwriting approach. Its model uses a real-time view of cash flow rather than requiring applicants to provide financial statements at the initial stage.

For Conexus Venture Capital, the investment extends a strategy of backing financial technology companies linked to the credit union sector. JUDI.AI joins portfolio companies including Cyder and Coconut Software.

Gord Baizley, Chief Executive Officer of JUDI.AI, said the company sees its offering as broader than a software product for lenders.

"At JUDI, we're not just selling a platform - we're championing a methodology. We've learned that success in small business lending is more than just technology, but a holistic approach that blends people, process, technology and intentional growth," Baizley said.

He also pointed to backing from current customers as a sign of confidence in the business.

"Small business lending and credit unions are a perfect match. The small business lending market is changing rapidly, but we play a critical role in helping credit unions leverage their strengths, adapt and win. To have two existing clients choose to invest in JUDI, including one for the second time, is a testament to the strong relationships we've formed," Baizley said.

Investor backing

Jordan McFarlen, Managing Director at Conexus Venture Capital, said the fund views credit unions and community banks as well-placed to compete more aggressively in small-business lending.

"We believe credit unions and community banks can and should be the small business lending market leader. JUDI.AI's impressive team, top-tier product and rapid expansion make this an opportunity we could not pass on. We are excited to back Gord and the JUDI.AI team as they help more credit unions win," McFarlen said.

Unitus Community Credit Union, which had already invested in JUDI.AI, said its continued support reflects its commitment to simpler access to finance for smaller companies.

"Unitus is committed to investing in innovative solutions that help us better serve our members and communities. Our continued partnership with JUDI.AI reflects our belief that small businesses deserve faster, simpler access to capital so they can focus on growing, creating jobs and strengthening the local economy," said Steven Stapp, President and Chief Executive Officer of Unitus Community Credit Union.

The transaction also highlights how credit union-backed investment funds are taking a more direct role in shaping the financial technology tools used by their sector, particularly in lending and member services.

JUDI.AI said its clients have used the platform to cut loan application and decision times from more than seven days to under 10 minutes.