Canadian fintech Neo Financial announced on Wednesday it raised $50 million between its Series A investment and debt financing. The funding round was led by Valar Ventures with participation from Tobi Lutke, the CEO and founder of Shopify; Golden Ventures; Inovia Capital; Thomvest; Afore Capital; Maple VC; FJ Labs; and District Ventures, the venture firm founded by Arlene Dickinson from Dragon’s Den. The debt facility was closed with the company’s financial partner, ATB Financial.
Founded in 2019, Neo Financial describes itself as a technology company working hard to build a better financial experience for all Canadians. The company reported it is on a mission to re-imagine spending, savings and rewards by using technology to simplify finances and create rewarding experiences for all Canadians. To do this, Neo offers Neo Savings, a high-interest savings account that earns members up to 30 times more than the Big Five banks, and the Neo MasterCard and Rewards program that combines spending and savings together on one platform.
“Through partnerships with leading financial institutions, Neo provides members with a safe and secure way to spend and save.”
Neo co-founder and CEO, Andrew Chau, spoke about the company’s growth and development:
“Now more than ever we are seeing the need for digital transformation in industries like banking, and Neo is at the forefront of that in Canada. Our team has set out to not only build new technology that challenges Canada’s existing financial sector, but also drives a cultural shift in how Canadians bank.”
With this latest investment, Neo will continue to serve the increasing demand for financial innovation and optionality in Canada.