Neo Financial, a Canada-based neobank, has raised $258 million in Series D funding. The new money included around $79 million in equity and $179 million in debt capital.
Neo Financial offers various digital banking services in partnership with Peoples Bank of Canada. As a neobank, Neo does not need to shoulder burdensome bank branches unlike legacy banks.
In May last year, Neo Financial raised $185 million in Series C funding, garnering a valuation of over $1 billion. At that time, the company reported raising $299 million today.
Investors included Tobi Lütke (CEO and founder of Shopify), Stewart Butterfield (founder of Slack), David Baszucki (CEO of Roblox), and Mike Wessinger (co-founder of PointClickCare). Existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, participated in the round.
Andrew Chau, co-founder and CEO of Neo, said there is strong demand in Canada for alternatives to traditional banking. He said the capital infusion will enable the company to continue to win the “hearts and minds” of Canadians.
Neo Financial, founded in 2019, currently offers users eight products, along with AI-native insights and automation. Services include cards, mortgages, savings, bill pay, and ATM access.
