Canadian digital mortgage lender nesto has raised C$80 ($59m) in an oversubscribed Series C funding round led by IGM Financial. 

nesto’s existing and new investors including Diagram Ventures, Portage, National Bank of Canada’s NAventures, BMO Capital Partners, as well as Michael Rowell and Michael Paulus also joined the round. 

The mortgage lender intends to use the funds to expand its marketing reach across Canada, develop proprietary technology, and introduce nesto Mortgage Cloud.

Aimed at financial institutions, nesto Mortgage Cloud is designed to support their digital transformation, enhance efficiency and upgrade their mortgage operations.

Through the cloud offering, nesto hopes to diversify its clientele and sources of income to bolster its position in the digital mortgage lending space. 

IGM Financial president and CEO James O’Sullivan said: “We are very pleased to deepen our relationship with nesto by investing in this dynamic and growing company. Both our organisations are committed to transparency, digital enablement and enhancing Canadians’ access to homeownership.”

nesto CEO and co-founder Malik Yacoubi said: “This investment from renowned financial institutions like IGM Financial, National Bank of Canada and BMO Bank of Montreal validates the hard work accomplished by nesto’s team in the last four years. 

“The new round of funding will help us further develop best-in-class technology and service more Canadians through partnerships with financial institutions.” 

In June 2021, nesto raised C$76m ($56.05m) in a Series B funding round led by Michael Rowell and Michael Paulus.