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Canada’s Neo raises $ 64 million

Neo Financial (Neo), a financial technology company founded by two of the co-founders of SkipTheDishes, today announced its $ 64 million Series B funding round.

This brings Neo’s total funding to $ 114 million, with Valar Ventures leading both Series A and B rounds.

With this latest capital increase, Neo will continue to grow its Calgary and Winnipeg team and focus on launching new integrated fintech partnerships with retailers – a significant void underserved by incumbent banks. You will also go beyond “spend and save” to innovate and bring new products and features to market all along the path of Canadians’ financial life.

Neo’s fully digital application and innovative approach to rewards has rapidly gained traction in the Canadian market, where the banking sector has long lagged the global market. Neo started in 2020 with the Neo Card, a fee-free Mastercard that brings in an average of 4-6% cashback with partners and at least 1% cashback for all expenses, and the Neo savings account, a high-interest savings account with all the advantages of an everyday bank account, the currently pays one of the highest interest rates in Canada. Since inception, Neo has worked with over 4,000 retail partners across their national cashback network, including a strategic partnership with Hudson’s Bay to power their new Hudson’s Bay Mastercard.

“Reinventing the way Canadian banking operates is not an easy task, but our team is rising to the challenge. This raise not only validates the problem Neo is tackling, but also the ability of our team to solve it, ”says Neo Co-Founder and CEO Andrew Chau. “As one of the largest Series B acquisitions for a Canadian fintech, this new round of funding will allow us to continue developing innovative products and features for all Canadians and businesses. It’s an exciting time to join our team from our Calgary and Winnipeg offices. “

“We are getting more and more impressed with the Neo Financial team. The pace at which they have built and expanded their technology, platform and new business partnerships is among the fastest we have seen in our careers, ”said Andrew McCormack, founding partner of Valar Ventures. “The Neo team brings a unique platform to the Canadian market; We are confident that Neo will become a giant in Canada’s financial system and improve the lives of millions of Canadians. “

New Series B investors included Greenoaks Capital, whose previous investments included Robinhood, Stripe, Discord, and Databricks, and Altos Ventures, which backed online gaming platform Roblox and Korean challenger bank Toss, which reached unicorn status in 2018 and now is valued at over CAD 9.4 billion. Other investors were Breyer Capital, whose founder Jim Breyer led the first institutional investment round at Facebook, as well as existing investors such as Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.

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