Canadian fintech startup Neo Financial has raised $50.59m (C$64m) in Series B funding round led by Valar Ventures.
New backers who joined the round include Greenoaks Capital and Altos Ventures along with Breyer Capital.
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The list of returning investors include Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.
The fintech firm plans to use the funds to expand its team in Calgary and Winnipeg, establish new partnerships with retailers as well as upgrade its products and services portfolio.
Neo Financial, which was launched in 2020, has raised a total of $90.2m (C$114m) in funding so far.
In December 2020, it secured C$50m in Series A funding and debt financing round, which was also led by Valar Ventures.
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By GlobalDataThe fintech offers a savings account, which according to Neo Financial, pays one of the highest interest rates in Canada.
Neo Savings account is provided by Concentra Bank.
It also offers a no-fee Mastercard, called Neo Card and a rewards programme.
Neo Financial stated that it has forged an alliance with over 4,000 retail partners on the national cashback network, which includes partnership with Hudson’s Bay to power its new Hudson’s Bay Mastercard.
Neo Financial co-founder and CEO Andrew Chau said: “Reimagining the way Canadians bank is no easy feat, but it’s a challenge that our team is taking head-on. This raise is validation of not only the problem Neo is tackling, but our team’s ability to solve it.”
Valar Ventures founding partner Andrew McCormack said: “We are more and more impressed by the team at Neo Financial. The pace at which they have built and continue to expand their technology, platform, and new enterprise partnerships is among the fastest we have seen in our careers.”
