Neo Financial secures $68.5m equity to scale lending model

February 4, 2026

Neo Financial, a Canadian FinTech company focused on building digital-first financial products for consumers, has secured $68.5m in equity funding to support the launch of its inaugural securitisation programme.

The oversubscribed equity round was led by a syndicate of more than 100 Canadian investors, founders and entrepreneurs. Institutional participants included Alberta Investment Management Corporation (AIMCo), Northleaf Capital Partners, Plaza Ventures, Sandstone Asset Management and Caldwell Growth Opportunities Fund.

The newly raised capital will be used to fund Neo Financial’s first securitisation programme, described by the company as a first-of-its-kind initiative for a Canadian FinTech. Through securitising its credit assets, Neo aims to adopt a capital-efficient funding model similar to those used by large global banks, enabling the business to grow its lending portfolio to billions of dollars without relying solely on equity-funded lending.

According to the company, this approach aligns its credit modelling and risk management practices with the standards typically associated with Canada’s Tier 1 banking sector.

A key enabler of the programme is Neo’s AI-driven credit models, which the company says allow for more accurate and detailed risk assessment.

The funding milestone is expected to support Neo’s broader growth ambitions and its continued focus on credit products.

Neo Financial CEO Andrew Chau said, “Our goal has always been to build a generational company that is made in Canada, for Canadians.

“By unlocking the power and scale of securitization, we can challenge the financial status quo that has been holding back Canadians’ financial progress for decades. Having the backing from over 100 of our country’s most successful entrepreneurs and institutional leaders is a massive vote of confidence as we enter our next phase of growth.”