Canadian fintech Neo Financial raises $360m to accelerate growth, offer competitive alternative to traditional banks

Canadian fintech Neo Financial (Neo), announced it has raised $360 million Series D fundraising round, consisting of $110 million of equity and $250 million of debt. This round of funding includes investments from Canadian founders and entrepreneurs bringing in their wealth of experience in scaling global tech brands including Shopify, Slack, Roblox and PointClickCare. Existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, also participated in this round. The new capital will accelerate the expansion of Neo Financial’s suite of innovative financial services products, offering competitive alternatives to traditional banks.

Andrew Chau, Co-founder and CEO, Neo: ''Neo Financial’s growth over the last 4 years reflects Canadians’ strong demand for alternatives to traditional banking. We’re building time and money-saving financial products that will help Canadians for decades to come. Despite being in the lowest period of venture funding that fintech has seen in the last 5 years, we’ve been able to raise one of the largest fintech funding rounds globally this year. This growth capital allows us to continue winning the hearts and minds of Canadians, serving them when they need it the most. Canada continues to lag in productivity and innovation, and our team is on a mission to reverse that trend and make Canada a better place to live.''

Tobias Lütke, CEO and Founder, Shopify: ''We need a culture of going for gold in Canada and this is precisely what the team at Neo Financial has. Their growth is proof that it’s possible to build world-class products here in Canada.''

Two years ago, Neo offered just a single product – today, Neo offers eight products and has established near-product parity with the legacy Canadian banks. This capital injection will accelerate product velocity, enabling Neo to continue building industry-leading products, AI-native insights, automations, and features for Canadians. This is all in addition to Interac e-Transfers® to send and receive money, access cards for bank accounts, and ATM access to withdraw cash, core functionality that, typically, only traditional banks provide.

Most recently, Neo Financial ranked #1 on The Globe and Mail's 2024 List of Canada’s Top Growing Companies and #1 on Deloitte’s Technology Fast 50’s Program, for the second year in a row. Alongside these impressive growth recognitions, Neo is proud to announce the opening of its Toronto office on Bay Street, adding to its cross-country presence of world-class talent, with pre-existing offices in Calgary and Winnipeg.

www.neofinancial.com

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