By: Shivani Persad, August 29 2024
Building credit and addressing crucial gaps in Canada’s financial system can be challenging. That’s why Robin Gray and his team created Karla, an innovative platform that aims to empower newcomers and students in Canada by tackling financial barriers. We sat with Robin to discuss his entrepreneurial journey and Karla’s evolution.
Can you tell us about your background and what inspired you to become an entrepreneur?
Before founding Karla, Robin had an unorthodox path. After a brief stint in university studying accounting, personal circumstances led to a pivot. “I ended up dropping out and started this e-commerce company,” Robin recalled. This venture, selling scratch maps for couples to track their travels together, provided valuable marketing, conversions, and community-based selling lessons.
Robin followed with a four-year tenure at Microsoft, where he learned about partner channels and the importance of a win-win-win mindset in business. “I think that really resonates with me, even today,” he reflected.
Can you describe Karla and the problem it aims to solve?
Karla was born out of a desire to address the financial challenges newcomers and students in Canada face. “We’re helping newcomers and students struggling today with certain barriers in the financial world,” Robin explained. The primary focus is tackling credit invisibility.
“There’s so many students today and so many newcomers who don’t have access to understanding Canada’s credit system,” he noted. Karla aims to change this through financial literacy education and practical credit-building tools.
One innovative feature is helping users build credit through rental payments. “We can declare their rental payments as on-time [to credit bureaus],” Robin shared. This is significant because on-time payments contribute about 35% to a credit score.
How has Karla evolved since its inception?
Karla’s journey has been marked by significant milestones. The company has been accepted into accelerator programs, including FinTech Cadence and Elevate’s Ecommerce North Tech Accelerator program powered by Moneris. They’ve also secured a partnership with Equifax, enabling the rental payment reporting feature, and obtained initial pre-seed investment.
The idea for Karla emerged from Robin’s experience in lead generation for real estate agents. “I noticed that many people, specifically students and newcomers, were spending almost half their salary during COVID on just rent,” he recalled. This observation and an encounter with a high-earning newcomer who was rejected for housing due to a lack of credit history sparked the idea for Karla.
What were some of the key challenges you faced when starting Karla?
Like many startups, Karla faced its share of challenges. One unique hurdle? “Too much advice,” Robin admitted. “When you have a startup, you’re likely a little self-conscious… so you try to listen to everyone.” He learned the importance of conviction in one’s mission and product.
Another challenge was navigating the Canadian investment landscape. “Canadian investors have a benchmark of what they’re looking for,” Robin explained, noting the need for revenue before investment, a catch-22 for many startups.
What makes your Karla unique in the market?
Karla stands out in the market due to its focused approach to newcomers and students. “I think we’re tackling a pretty big problem right now. I think we’re also aligned very much with the government’s focus,” Robin shared. The team’s personal connection to the immigrant experience adds authenticity to their mission, making it resonate strongly with their target audience.
How has the program helped you overcome specific challenges you faced as an entrepreneur?
Participating in accelerator programs, including our Tech Accelerator powered by Moneris, provided Karla with invaluable support. “The biggest benefit was access to the mentors,” Robin emphasized. He highlighted two particularly impactful experiences. First, they received guidance on creating the best customer onboarding experience from an Interac expert. Second, they got tailored go-to-market strategy support from a mentor with direct experience in their business model.
What are your future plans for Karla?
Karla has ambitious plans for the future. “We want to help get our first 100,000 members by end of year,” Robin shared. They’re also exploring AI models for multi-language financial literacy and potential partnerships to expand their cashback offerings.
What advice would you give to other entrepreneurs who are starting their journey?
When asked what advice he’d give aspiring entrepreneurs, Robin emphasized the importance of passion. “Do what energizes you,” he advised. “Find something that doesn’t feel like a job, more like a passion, something that you’re obsessed with.”
Karla’s journey exemplifies the power of identifying a critical market need and pursuing it with conviction. As they continue to grow and evolve, we’re excited to see how Karla will transform the financial landscape for newcomers and students in Canada.
We encourage you to follow Karla’s journey as they further develop their platform and scale. If you want funding and support to scale your tech company globally, consider applying to our next Tech Accelerator program.
