Canadian fintech Neo Financial has raised $258.3 million (CAD 360 million) in a Series D funding round, comprising $78.9 million in equity and $179.3 million in debt. This significant capital boost positions Neo to accelerate its growth and product development in Canada’s financial technology market.
The Series D round included fresh investment from notable angel investors such as 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. The round also saw continued support from Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, alongside other existing investors, signaling strong confidence in Neo’s market potential.
Founded in 2019 and based between Calgary and Toronto, Neo Financial offers a diverse array of banking services tailored to Canadian consumers. These include credit cards, mortgages, savings accounts, bill payment services, and AI-powered budgeting tools. The company’s innovative approach and broad service suite aim to provide a viable alternative to traditional banking.
Neo Financial intends to use the funds to “accelerate product velocity” and drive further expansion. CEO Andrew Chau described the Series D round as “one of the largest fintech funding rounds globally this year,” pointing to the growing demand among Canadians for alternative banking solutions.
The Series D follows Neo’s $145 million Series C round in 2022, which brought its valuation to over $1 billion. With this latest round, Neo has secured over $650 million in funding to date, solidifying its presence as a prominent player in the Canadian fintech space.
