Neo Financial, which aims to improve the financial experience for Canadians, has raised $64m in its Series B funding round.
The equity round was led by Valar Ventures, which also served as the lead investor for Neo’s $39.3m Series A round in late 2020. Other backers to the Series B include Greenoaks Capital, Breyer Capital, Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.
With the funds, the FinTech company hopes to grow its teams in Calgary and Winnipeg. Funds will also be used to launch new integrated FinTech partnerships with retailers, which it sees as a major gap underserved by incumbent banks.
Other growth plans include moving beyond spending and saving tools, with new products that will support more of a consumer’s financial life.
Neo launched in 2020 with a no-fee Mastercard that gives an average of 4-6% cashback at partners and 1% cashback on all spend. It claims to have partnered with 4,000 retail partners on the national cashback network, including Hudson’s Bay to support its new Hudson’s Bay Mastercard.
It also launched with its Neo Savings account, a high-interest savings account that claims to have one of the highest interest rates in Canada.
Neo co-founder and CEO Andrew Chau said, “Reimagining the way Canadians bank is no easy feat, but it’s a challenge that our team is taking head on. This raise is validation of not only the problem Neo is tackling, but our team’s ability to solve it.
“As one of the largest Series B raises for a Canadian fintech, this new round of funding will allow us to continue building innovative products and features for all Canadians and businesses. It’s an exciting time to grow our team from both our Calgary and Winnipeg offices.”
With the close of the round, the FinTech company has raised a total of CAD 144m ($113m) in equity.
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