In a spherical led by Valar Ventures, Neo Monetary, a fintech primarily based in Alberta, Calgary and Manitoba, Winnipeg, has raised $50 million ($64 million CAD) in new fairness funding. The recent capital takes the Canadian firm’s whole funding to $89 million ($114 million CAD), and can assist allow the corporate so as to add expertise and launch new built-in fintech partnerships with retailers.
“Reimagining the best way Canadians financial institution isn’t any simple feat, but it surely’s a problem that our group is taking head on,” Neo co-founder and CEO Andrew Chau stated. “This elevate is validation of not solely the issue Neo is tackling, however (additionally) our group’s means to unravel it.”
Going dwell final 12 months, Neo provided a high-interest financial savings account, and a no-fee Mastercard that provides as much as 6% money again at partnering corporations and not less than 1% cashback throughout all different spending, referred to as Neo Card. Since its 2020 launch Neo has inked partnerships with greater than 4,000 retailers, together with a strategic partnership with Hudson’s Bay to energy the corporate’s new Hudson’s Bay Mastercard providing. Right now’s funding announcement comes on the heels of Neo’s buy of workplace area in Winnipeg’s Change District, enabling the corporate to open a second headquarters within the metropolis.
Becoming a member of at the moment’s Sequence B have been new traders Greenoaks Capital – which has backed fintechs and ecommerce innovators like Robinhood and Stripe – in addition to South Korean challenger financial institution Toss, a unicorn valued at greater than $7.3 billion ($9.4 billion CAD). Different traders included Breyer Capital, Golden Ventures, Afore Capitaal, Inovia Capital, Thornvest, and Maple VC. Along with main Neo’s Sequence B spherical, introduced at the moment, Valar Ventures additionally led the corporate’s earlier spherical of funding – a $19.5 million (CAD $25 million) Sequence A spherical – in December 2020.
“As one of many largest Sequence B raises for a Canadian fintech, this new spherical of funding will permit us to proceed constructing modern merchandise and options for all Canadians and companies,” Chau stated. “It’s an thrilling time to develop our group from each our Calgary and Winnipeg workplaces.”
Neo Monetary was based by two of the co-founders of SkipTheDishes, a web based restaurant meals supply agency launched in 2012. SkipTheDishes was acquired by JustEast 4 years later for $200 million.
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