Neo Financial, a Calgary-based Fintech startup, has closed a $64 million Series B funding round to revolutionize how people use their money.
The round was led by Valar Ventures, who also led the Series B round, and counted with participation from Greenoaks Capital, Altos Ventures, Breyer Capital, Golden Ventures, Afore Capital, Inovia Capital, Thomvest, and Maple VC. This brings the total funding raised by the startup since being founded in 2019 to $114 million. Andrew McCormack, a founding partner of Valar Ventures, referred to this investment by stating:
“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 career. 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.”
Neo Financial provides its users with a fully digital financial platform that offers financial services like its Neo Card, Neo Savings account, and rewards program. Since being launched in 2020, the startup has partnered with more than 4,000 retailers in Canada to provide its users with as much as 6% cashback. Andrew Chau, Neo co-founder and CEO, said about how the funding will the startup expand its services:
“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 traditional finance continuing to lose ground against fintech startups as consumer trust erodes, digital banking solutions are becoming increasingly relevant among the younger generations. By launching new products and offering more benefits to its users, the startup believes it can boost the digital revolution while improving the financial experience of millions.