London's first $1B tech company? Paystone eyes sales milestone

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A London tech firm has been named one of the top performing businesses in its sector, and is looking to smash the $1-billion annual sales barrier.

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London's first $1B tech company? Paystone eyes sales milestone Back to video

Paystone, located on Wonderland Road, develops “point-of-sale” software for transactions such as debit payments and is one of 35 businesses to make Team True North, a list identifying technology companies on track to sell globally, and top $1-billion in annual sales by 2030, compiled by Communitech in Waterloo.

“It’s not a question of if, but when we hit $1-billion in sales,” said Tarique Al-Ansari, Paystone chief executive. “We’re pursuing a dual strategy growing organically through sales, but also through acquisitions.”

Paystone has acquired six businesses in two years and is in the final stages of its seventh deal, Al-Ansari said. As for sales, it posted 276 per cent sales growth during three years, positioning it at 163rd out of a ranking of the top 430 fastest-growing companies in Canada, compiled in September by the Globe and Mail.

“I’m very proud to say that we’re a London company that’s going places,” Al-Ansari said.

He declined to reveal total sales, but said it is “in the three-digit million” mark.

Of the 35 businesses on Team True North, Paystone is the only one from London. Five businesses from Waterloo made the list with businesses from Vancouver to Prince Edward Island featured, with healthy representation from Toronto.

“The idea behind Team True North is amazing. There’s a lot of talent here, great companies, but someone has to shout it from the rooftops. These companies are going places and worth working for and worth following,” Al-Ansari said.

He credited London’s TechAlliance, London’s version of Communitech, with telling Communitech about Paystone and Communitech reached out to add it to its list.

“We need to see more of that kind of co-operation and collaboration,” Al-Ansari said.

John Pollock, business development consultant with the London Economic Development Corp., sees the emergence of Paystone as a reminder of when London’s business landscape was dominated by financial institutions.

“Having a major fintech (finance technology) business here is like coming full circle, when we used to be the headquarters for banks and trust companies,” he said. “We may have a world leader in fintech in London and that’s remarkable.”

Paystone started with technology supporting financial transactions such as debit payments, but it has grown by offering more, such as bonus reward technology and customer feedback software, Al-Ansari said.

“We have doubled-down on software. We’re helping merchants to do more,” at the point-of-sale transaction, he said.

The Team True North strategy is to help tech companies grow. To achieve that, Communitech unveiled a four-pronged strategy to support Canadian tech businesses including: Working to promote these businesses globally, encourage talent to work for Canadian businesses, urge public agencies such as health care and government to buy Canadian tech, and finally to persuade investors to support Canadian tech.

To identify Team True North candidates, Communitech reviewed data gathered by Silicon Valley Bank and analysis done by U.S. data-science firm Two Sigma, states a report on its website. The companies on the Team True North list meet one of four criteria:

• $20 million-$39 million in annual revenue with a 60-per-cent or more growth rate;
• $40 million-$79 million in annual revenue with a 40-per-cent or more growth rate;
• $80 million-$99 million in annual revenue with at least a 20 per cent growth rate; or
• More than $100 million in annual revenue with at least a 15 per cent growth rate.

ndebono@postmedia.com

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