With this latest capital raise, Neo will continue to grow its team from both Calgary and Winnipeg, and focus on launching new integrated fintech partnerships with retailers – a significant gap that’s underserved by incumbent banks. They will also be going beyond just ‘spending and saving’ to innovate and launch new products and features across the entire journey of Canadians’ financial lives.
Neo Financial, a financial technology company created by two of the co-founders of SkipTheDishes, today announced their $64 million Series B fundraising round. This brings Neo’s total funding to $114 million CAD, with Valar Ventures leading both Series A and B rounds.
Neo’s fully digital application and innovative approach to rewards has gained quick traction in the Canadian market, where the banking sector has long fallen behind the global market. Neo initially launched in 2020 with the Neo Card, a no fee Mastercard that earns an average 4-6% cashback at partners and at least 1% cashback across all spend, and the Neo Savings account, a high-interest savings account with all the benefits of an everyday bank account, which currently pays one of the highest interest rates in Canada. Since the launch, Neo has partnered with over 4,000 retail partners on their national cashback network, including a strategic partnership with Hudson’s Bay to power their new Hudson’s Bay Mastercard.
“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,” says Neo co-founder and CEO, Andrew Chau. “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.”
“We are more and more impressed by the team at Neo Financial. The pace at which they have built and continue to expand their technology, platform, and new enterprise partnerships is among the fastest we have seen in our careers,” said Andrew McCormack, a founding partner of Valar Ventures. “The Neo team is bringing a unique platform to the Canadian market; we’re confident that Neo will become a giant in the Canadian financial system and improve the lives of millions of Canadians.”
New Series B investors included Greenoaks Capital, whose past investments included Robinhood, Stripe, Discord and Databricks, and Altos Ventures who backed online gaming platform Roblox and the Korean challenger bank Toss, which hit unicorn status in 2018 and is now valued at over CAD$9.4 billion. Other investors included Breyer Capital, whose founder Jim Breyer led the first institutional investment round in Facebook and existing investors including Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.
This investment follows recent news of Neo’s newly acquired office space in Winnipeg’s Exchange District that will serve as its second headquarters, in addition to its downtown Calgary office. Neo is hiring for over 100 roles in software development and engineering, product, design, operations, and more.
About Neo Financial:
Neo Financial (Neo) is a technology company working hard to build a better financial experience for all Canadians. Founded in 2019 by co-founders of SkipTheDishes, Neo is re-imagining spending, savings and rewards by using technology to simplify finances, create rewarding experiences, and build community for all Canadians. Neo partners with over 4,000 retail and e-commerce partners across the country to help businesses acquire new customers, drive incremental sales, and sustain customer loyalty. Through partnerships with leading financial institutions, Neo provides members with a safe and secure way to spend and save. Neo’s credit card is issued by ATB Financial and backed by the Mastercard network, and the Neo Savings account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Neo is headquartered in Calgary, AB and Winnipeg MB, and is backed by top investors across North America.
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