Neo Financial Raises $360 Million in Funding

Canadian fintech Neo Financial has secured C$360 million ($258.2 million) in a Series D funding round, consisting of C$110 million in equity and C$250 million in debt. The round attracted prominent investors, including Shopify's Tobi Lütke and Slack's Stewart Butterfield, alongside existing supporters like Valar Ventures and Golden Ventures. Neo plans to utilize the new capital to expand its range of financial products and enhance its services, which currently include credit cards, mortgages, and AI tools for budgeting. Since its inception in 2019, Neo has raised over C$650 million, reflecting strong demand for alternatives to traditional banking in Canada, as highlighted by CEO Andrew Chau. The funding comes at a time when venture capital in fintech has slowed due to economic pressures, marking a significant achievement for Neo. The company is also set to open a new office in Toronto’s financial district, further solidifying its presence in the market.