Neo Financial announced that it has secured C$360 million in a Series D fundraising round backed by notable entrepreneurs to expand its suite of financial services products.
The Calgary, Winnipeg and Toronto-based challenger bank said the round consists of C$110 million of equity and C$250 million of debt.
The new capital includes funding from Shopify Inc (TSX:SH., NYSE:SHOP) founder Tobi Lütke, Slack Technologies Inc (NYSE:WORK) founder Stewart Butterfield, Roblox Corp (NYSE:RBLX) CEO David Baszucki, and PointClickCare co-founder Mike Wessinger.
Existing investors, including Peter Thiel's Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, also participated.
“Neo Financial’s growth over the last four years reflects Canadians’ strong demand for alternatives to traditional banking,” Neo CEO Andrew Chau said in a statement.
“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.
Slack founder Butterfield added: "Investing in Neo Financial was about supporting a team that deeply understands Canadians and is relentless in improving their financial experience.”
Since it was founded in 2019, Neo Financial has raised more than $650 million in funding.
It currently offers eight financial products including credit cards, mortgage rates through Neo Mortgage and high-interest savings accounts.