Canada’s Neo raises C$360m in equity and debt

The round was led by an unnamed Chinese investor, according to documents first reported by The Logic.

Series D shares have been issued at a fraction of their value during a 2022 Series C round. The company has not disclosed its current valuation but confirmed to BetaKit that it is below the 2022 C$1 billion-plus tag.

Shopify co-founder Tobi Lütke, Slack co-founder Stewart Butterfield, Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, joined the round.

Andrew Chau, CEO, Neo, says: “Despite being in the lowest period of venture funding that fintech has seen in the last 5 years, we’ve been able to raise one of the largest fintech funding rounds globally this year.”

Founded in 2019 by the co-founders of food courier company SkipTheDishes, two years ago Neo offered a single product. Today it has eight, including bank accounts, credit cards, mortgages, savings accounts, investments and AI-powered budgeting tools.

The firm also offers embedded services, working with the likes of Tim Hortons, Cathay Pacific, and Hudson’s Bay.

“Investing in Neo Financial was about supporting a team that deeply understands Canadians and is relentless in improving their financial experience,” says Butterfield. “They’re building a solution that’s more human-centred than anything we’ve seen in fintech.”

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