Neo Financial Announces $ 64 Million Series B Increase to Accelerate Growth
Calgary, Alberta – (COMMERCIAL THREAD) –Neo Financial (Neo), a fintech company founded by two of SkipTheDishes’ co-founders, today announced its Series B fundraising of $ 64 million. This brings Neo’s total funding to C $ 114 million, with Valar Ventures leading both Series A and Series B.
With this latest capital increase, Neo will continue to grow its team in Calgary and Winnipeg, and will focus on launching new integrated fintech partnerships with retailers – a significant gap that is underserved by incumbent banks. They will also go beyond âspend and saveâ to innovate and introduce new products and features throughout the financial lives of Canadians.
Neo’s all-digital app and innovative approach to rewards quickly gained traction in the Canadian market, where the banking industry has long lagged behind the global market. Neo was initially launched in 2020 with the Neo Card, a no-fee Mastercard that earns an average of 4-6% cashback with partners and at least 1% cashback on all expenses, and the Neo Savings account, a High interest savings with all the benefits of a current bank account, which currently pays one of the highest interest rates in Canada. Since launch, Neo has partnered with more than 4,000 partner retailers on its national cash back network, including a strategic partnership with Hudson’s Bay to fund its new Hudson’s Bay Mastercard.
âReinventing the way Canadians do their banking isn’t easy, but it’s a challenge our team is tackling head on. This increase is a validation not only of the problem Neo is tackling, but also of our team’s ability to solve it, âsaid Andrew Chau, co-founder and CEO of Neo. âAs one of the largest Series B fundraisers for a Canadian fintech, this new round of funding will allow us to continue to create innovative products and features for all Canadians and businesses. It is an exciting time to grow our team from our Calgary and Winnipeg offices.
âWe are increasingly impressed with the Neo Financial team. The pace at which they’ve built and continue to expand their technology, platform and new business partnerships is one of the fastest we’ve seen in our careers, âsaid Andrew McCormack, Founding Partner by Valar Ventures. âThe Neo team brings a unique platform to the Canadian market; We are 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 have included Robinhood, Stripe, Discord and Databricks, and Altos Ventures which has backed online gaming platform Roblox and Korean challenger bank Toss, which has achieved status as unicorn in 2018 and is now valued at over CA $ 9.4 billion. Other investors included Breyer Capital, whose founder Jim Breyer led the first round of institutional investing in Facebook and existing investors including Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.
This investment follows the recent announcement of Neo’s newly acquired office space in the Winnipeg Stock Exchange District which will serve as its second head office, in addition to its downtown Calgary office. Neo is recruiting for over 100 positions in software development and engineering, products, design, operations, etc. Those interested in learning more about the opportunities at Neo can visit neofinancial.com/careers.
For more information on Neo, visit NeoFinancial.com
About Neo FinanciÃ¨re:
Neo Financial (Neo) is a technology company that works hard to create a better financial experience for all Canadians. Founded in 2019 by the co-founders of SkipTheDishes, Neo is reinventing spending, savings and rewards by using technology to simplify finances, create rewarding experiences and build community for all Canadians. Neo partners with more than 4,000 retail and e-commerce partners across the country to help businesses acquire new customers, generate additional sales and retain customers.
Through partnerships with leading financial institutions, Neo offers its members a safe and secure way to spend and save. Neo’s credit card is issued by ATB Financial and supported by the Mastercard network, and the Neo Savings account is provided by Concentra Bank, a SADC member institution, and is eligible for SADC deposit protection. Neo is headquartered in Calgary, AB and Winnipeg MB, and is backed by top investors across North America. For more information, please visit neofinancial.com.