FinTech: Fast-Growing Neo Financial Raises $145M , Turns Canadian Unicorn

May 6, 2022 | FinTech, News, Venture Capital

Neo Financial is en route to becoming a challenger bank after its highly successful loyalty and card products.

Canadian fintech Neo Financial has raised US$145 million dollars in its latest funding, and attained unicorn status after achieving a valuation of over $1 billion. The new financing round was led by Valar Ventures and saw participation from Tribe Capital, Altos Ventures, Blank Ventures, Gaingels, Maple VC, and Knollwood Advisory. (Finovate)

Founded in 2019, Neo Financial’s aim is to make Canadians’ financial lives easier by offering new and user-friendly banking products. Its one million customers use:

  • the Neo Credit Card, a cash-back credit card issued by ATB Financial and backed by the MasterCard network
  • the Neo high-interest savings account provided by Concentra Bank
  • Neo Invest — Canada’s first actively managed, fully digital investment vehicle

A new mortgage product is also on the anvil.

In an interview with CTV News, founder Andrew Chau said: “For us, we’ve always been trying to go against the grain, to truly reimagine financial institutions. And the best way to do that is to avoid that groupthink and have a fresh new perspective.”

Solid growth

A few growth milestones over the previous year include a doubling of its team to more than 650 people at its Canadian offices; its Neo Card was judged the best cashback card in Canada; and the Neo Money account was voted the best bank account in Canada.

Additionally, Neo set up partnerships with over 7,000 businesses across Canada including Home Depot, Hudson’s Bay, Goodfood, H&R Block, Boston Pizza, and others.

“The pace at which this team releases new products and grows its customer base is among the fastest we have seen in our careers,” said Andrew McCormack, a founding partner of Valar Ventures, in a release.

Related Story: Israeli Fintech Tipalti (“I Handled It”) Nabs $270M At $8.3B Valuation

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Michael Saylor Unmoved By Crypto Weakness; “We Think It’s The Future Of Money”
May 20, 2022     Digital Assets, News

Michael Saylor, CEO of MicroStrategy (NASDAQ: MSTR), who is permanently bullish on bitcoin, reiterated his positive outlook for the leading crypto in an interview on Thursday. Note that MicroStrategy currently…
Digital Assets: Traditional Markets Could Suffer Contagion From (Un)Stablecoins (SEC Chair Gensler)
May 20, 2022     Digital Assets, News

The crypto world was dealt a body blow by the collapse of the TerraUSD (UST) stablecoin earlier this month. The Terra meltdown is now being referred as crypto’s “Lehman moment.”…
Venture Capital: Big-Ticket Funding Rounds In Fintechs
May 20, 2022     FinTech, News, Venture Capital

Fast-growing, Southeast Asia-focused payments infrastructure platform Xendit closed on a US$300 million Series D funding co-led by Coatue and Insight Partners with additional investment from Accel, Tiger Global, Kleiner Perkins,…
FinTech: Sam Bankman-Fried Led FTX.US Makes Inroads Into Stock Trading
May 20, 2022     Digital Assets, FinTech, Latest News, News

FTX Stocks is an equity trading platform offered through the FTX US trading application. FTX US announced Thursday a private beta phase trading on the platform for US customers selected…