Neo Financial’s $64M Series B Funding Will Speed Growth

FinTech company Neo Financial on Wednesday (Sept. 15) announced that Valar Ventures had led its recently completed $64 million Canadian ($50.6 million) Series B fundraising round, bringing its total fundraising to $114 million Canadian (more than $90.6 million) after a recent Series A round.

Neo will use the new cash to grow its team in Calgary and Winnipeg and launch integrated FinTech partnerships with retailers. The company launched the no-fee Neo Card in 2020, allowing members to earn 4% to 6% at partnering retailers and at least 1% for all spending, and also providing access to the high-interest Neo Savings account.

The company has partnered with more than 4,000 retailers on its national cashback network, most recently with Hudson’s Bay on its branded Mastercard.

“Reimagining the way Canadians bank is no easy feat, but it’s a challenge that our team is taking head-on,” said Neo Co-founder and CEO Andrew Chau in the company announcement. “This raise is a validation of not only the problem Neo is tackling, but also our team’s ability to solve it.

“As one of the largest Series B raises for a Canadian FinTech, this new round of funding will allow us to continue building innovative products and features for all Canadians and businesses. It’s an exciting time to grow our team from both our Calgary and Winnipeg offices,” he added.

New Series B investors include Greenoaks Capital and Altos Ventures. Other investors include Breyer Capital.

Neo recently added office space in Winnipeg’s Exchange District, which will serve as its second headquarters. The company is looking to hire more than 100 new employees in software development and engineering, product, design, operations and other areas.

Related news: Canadian FinTech Neo Financial Raises $50M in Series A Round

Late last year, Neo Financial said it has raised CAD $50 million in a Series A funding round that included $25 million in funding and $25 million in debt facility financing as part of its first push to expand its operations across the Great White North.