Prairie-born fintech Neo Financial today announced a $360 million Series D fundraising round consisting of $110 million of equity and $250 million of debt.
The funding round includes investments from renowned Canadian founders and entrepreneurs including Tobi Lütke (CEO and founder of Shopify), Stewart Butterfield (founder and former CEO of Slack), David Baszucki (investor and CEO of Roblox), and Mike Wessinger (co-founder and Executive Chair of PointClickCare).
Existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, also participated in this round. Vancouver’s Version One Ventures also participated in the round.
Two years ago, Neo offered just a single product – today, Neo offers eight products and has established near-product parity with the legacy Canadian banks.
“We need a culture of going for gold in Canada and this is precisely what the team at Neo Financial has,” said Tobi Lütke, CEO and founder of Shopify. “Their growth is proof that it’s possible to build world-class products here in Canada.”
Last week Neo topped Deloitte’s 2024 Technology Fast 50 list with a three-year growth of 154,022 per cent.
Headquartered in Calgary, the company is building a smarter financial experience for all Canadians using the latest technology. Specializing in savings and credit products, Neo Financial is on a journey to reshape the financial future for millions of people in Canada.
“Investing in Neo Financial was about supporting a team that deeply understands Canadians and is relentless in improving their financial experience,” said Stewart Butterfield, founder and former CEO of Slack. “They’re building a solution that’s more human-centered than anything we’ve seen in fintech.”
According to reporting from The Logic, shares in this fundraising round were issued at a fraction of their previous value, meaning the company’s valuation has dropped substantially. The Logic also uncovered that majority of the shares the company issued in this round were sold to a single buyer based in China.
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