Canadian fintech Neo Financial raises $258m in mix of equity and debt funding
Neo Financial has raised $258.3 million (CAD 360 million) in Series D funding, comprising $78.9 million in equity and $179.3 million in debt.
Neo Financial raises $258m Series D
The round drew fresh participation from angel investors Tobi Lütke, CEO and founder of Shopify; Stewart Butterfield, founder and former CEO of Slack; Roblox CEO David Baszucki; and Mike Wessinger, co-founder and executive chair of PointClickCare.
Valar Ventures, Golden Ventures, Afore Capital and Thomvest Ventures also supported the round, among other existing investors.
Based between Calgary and Toronto, Neo operates a suite of banking services for consumers in Canada, including credit cards, mortgages, savings accounts, bill payment and AI-powered budgeting tools.
In a statement, the fintech says it will use its latest capital raise to “accelerate product velocity”, having significantly expanded its remit since its inception in 2019.
This acceleration is to be led by CEO Andrew Chau, who describes the Series D as “one of the largest fintech funding rounds globally this year”, and indicative of “Canadians’ strong demand for alternatives to traditional banking”.
The round builds on the $145 million previously raised by Neo’s Series C, which closed in 2022 at a company valuation of over $1 billion, with the fintech now understood to have secured more than $650 million in funding to date.
