Neo Financial Raises CAD $360 Million in Series D Funding Round
Neo Financial, a prominent Canadian financial technology company, has successfully raised CAD $360 million in its Series D funding round. This funding consists of CAD $110 million in equity and CAD $250 million in debt. The round includes investments from high-profile Canadian founders and entrepreneurs with extensive experience in scaling global tech companies, such as Tobi Lütke (CEO and founder of Shopify), Stewart Butterfield (founder and former CEO of Slack), David Baszucki (CEO and investor at Roblox), and Mike Wessinger (co-founder and Executive Chair of PointClickCare). Additional support comes from existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures.
Andrew Chau, co-founder and CEO of Neo Financial, remarked, “Neo’s rapid growth over the last four years reflects the strong demand among Canadians for alternatives to traditional banking. We are committed to building financial products that save both time and money, and this funding will help us continue to serve Canadians for years to come. Despite the current downturn in venture funding for fintech, we have managed to secure one of the largest global fintech funding rounds this year. This growth capital allows us to further expand and improve our offerings, as we work toward reversing Canada’s productivity and innovation gaps.”
Tobi Lütke, CEO and founder of Shopify, added, “Neo’s success demonstrates that world-class products can indeed be built in Canada. Their growth is a shining example of what can be achieved here.”
Stewart Butterfield, founder and former CEO of Slack, expressed, “What impressed us about Neo Financial is their deep understanding of Canadians and their relentless commitment to enhancing the financial experience. They are building a human-centered solution that stands out in the fintech space.”
David Baszucki, investor and CEO of Roblox, highlighted, “I invest in companies that challenge the status quo, and Neo is doing just that. They are empowering people with new tools to unlock financial opportunities.”
Mike Wessinger, co-founder and Executive Chair of PointClickCare, said, “Neo Financial is leading the charge in Canadian innovation. Supporting their growth is about showcasing what Canada can achieve in fintech—setting trends rather than following them.”
Since launching just two years ago with a single product, Neo has expanded its offering to eight distinct products, nearly matching the legacy Canadian banks in terms of product variety. This new capital will fuel the development of more industry-leading products, AI-powered insights, and automation features. Notable products and features include:
- Premium Credit Cards: Neo offers Canada’s top no-annual-fee and cash-back credit cards, including the Neo World Mastercard® and the Neo World Elite® Mastercard, with some of the best cashback rates in the country. Both cards are also available as secured credit options for those building or establishing credit.
- Competitive Mortgage Rates: Neo Mortgage offers tailored mortgage rates, providing Canadians with a transparent and competitive way to secure homeownership without straining their budgets.
- AI Money Insights: Neo’s AI-powered tool helps users budget smarter by categorizing their spending and providing detailed insights into their financial habits, making it easier for Canadians to manage their finances.
- High-Interest Savings Accounts (HISA): Neo offers some of the highest interest rates on HISAs in Canada, with no minimum deposit or commitment required. Customers can also open up to 10 accounts to better manage their savings.
- Automated Savings Options: Neo makes saving effortless by allowing customers to set up automatic transfers to grow their savings automatically.
- Instant Bill Pay: With the Neo Everyday account, users can pay bills instantly, track expenses, and gain insights into their spending—all within the Neo app.
In addition to these offerings, Neo provides essential banking features such as Interac e-Transfers®, access cards, and ATM withdrawals, which are typically only offered by traditional banks.
Neo’s achievements have been recognized by The Globe and Mail, which ranked it #1 on Canada’s Top Growing Companies list for 2024, and by Deloitte, which named Neo #1 on its Technology Fast 50 list for the second consecutive year. The company is also expanding its footprint with the opening of a new office in Toronto, adding to its existing offices in Calgary and Winnipeg.
With this new funding and continued growth, Neo Financial is well-positioned to lead the charge in transforming Canada’s fintech landscape and improving the financial experience for Canadians.
