Canada’s Neo Financial hits unicorn status with $145m Series C raise

Canadian fintech Neo Financial has secured $145 million (CAD 185 million) in a Series C funding round at a valuation of more than $1 billion.

Neo Financial bags $145m in Series C round

The round was led by Valar Ventures with a number of new and existing investors also participating, including Tribe Capital, Altos Ventures, Maple VC, Blank Ventures, Gaingels and Knollwood Investment Advisory.

A secondary share sale was also offered with the fundraising round, allowing early investors and employees to sell a portion of their shares to investors.

The new investment brings the company’s total funding to date to around $233 million (CAD 299 million). It previously raised $50 million in a Series B funding round in September last year.

Founded in 2019 by two of the co-founders of online food ordering company SkipTheDishes, Neo provides its customers with a safe and secure platform to spend, save and invest. The Neo Money account is provided by Concentra Bank and its credit card issued by ATB Financial, backed by the Mastercard network.

Headquartered in Winnipeg and Calgary, the firm also offers products such as personalised loyalty card programmes, co-branded card programmes, BNPL options, point of sale (POS) installment financing and subscription-based loyalty services for online and physical stores.

Neo plans to use the new capital to create new products and expand its team size as it looks to accelerate its mission to become a “one-stop-shop” for all financial services for Canadian people and retailers.