Neo Financial – a leading Canadian financial technology company – announced a C$360 million Series D funding round, consisting of C$110 million of equity and C$250 million of debt. This funding round includes investments from several Canadian founders and entrepreneurs known for experiences in scaling global tech brands, such as Tobi Lütke (CEO and founder of Shopify), Stewart Butterfield (founder and former CEO of Slack), David Baszucki (investor and CEO of Roblox), and Mike Wessinger (co-founder and Executive Chair of PointClickCare). Existing investors participated in this round, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures.
Two years ago, Neo offered just a single product. And now Neo offers eight products and has established near-product parity with the legacy Canadian banks. This funding will accelerate product velocity, enabling Neo to continue building industry-leading products, AI-native insights, automation, and features for Canadians. A few examples of these products and features include:
Premium Credit Cards—Neo offers no-annual-fee and cash-back credit cards, including the Neo World Mastercard and the Neo World Elite Mastercard. These industry-leading cards deliver world-class cashback rates, setting a new standard for Canadian consumers who want actual value on their purchases. Plus, for those new to Canada or looking to build credit, both of these cards are available as Secured Credit, ensuring everyone can access smarter financial solutions.
Competitive Mortgage Rates with Neo Mortgage – Neo Mortgage offers highly competitive along with transparent and tailored mortgage rates, helping Canadians achieve their home ownership goals without compromising on budget.
AI Money Insights for Smarter Budgeting – Provides a comprehensive view of finances with Neo’s AI Money Insights, a tool that utilizes AI to help Canadians budget smarter. By categorizing spending, the Neo app offers accurate insights that reveal where Canadians’ money is going, helping them stay on top of their financial goals.
High-Interest Saving accounts with leading interest rates — Neo’s HISAs enable customers to easily grow their savings. Canadians can create up to 10 accounts to help them allocate their money effectively, each earning one of the highest rates in Canada. Unlike others, it’s not an introductory or promotional rate, with no minimum deposits or commitments required.
Automated Savings Options — Neo’s savings automation feature makes saving money effortless. And customers can set automatic transfers to grow savings in the background seamlessly.
Instant Bill Pay — Through Neo’s Everyday account, managing payments is fast and straightforward. Canadians can pay bills immediately, keep track of expenses, and get insights into their spending, all within the Neo app.
In addition to Interac e-Transfers to send and receive money, access cards for bank accounts, and ATM access to withdraw cash, core functionality typically only traditional banks provide.
KEY QUOTES:
“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.”
- Andrew Chau, co-founder and CEO of Neo
“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.”
- Tobi Lütke, CEO and founder of Shopify
“Investing in Neo Financial was about supporting a team that deeply understands Canadians and is relentless in improving their financial experience. They’re building a solution that’s more human-centered than anything we’ve seen in fintech.”
- Stewart Butterfield, founder and former CEO of Slack
“As an investor, I seek out opportunities where companies are pushing boundaries and challenging the status quo to unlock potential – Neo Financial is giving people new tools to unlock financial opportunities.”
- David Baszucki, investor and CEO of Roblox
“Neo Financial has the drive and the vision to push Canadian innovation forward. Supporting their growth is about showing the world what Canada can do in fintech – not just following trends, but setting them.”
- Mike Wessinger, co-founder and Executive Chair of PointClickCare
