Neo Financial, a Canadian challenger bank founded by former SkipTheDishes executives, has secured C$360m (US$257m) in Series D funding to expand its artificial intelligence-driven banking services.
The round, comprising C$110m (US$79m) in equity and C$250m (US$179m) in debt financing, positions the firm to compete with Canada’s established banking sector.
New Backers and Strategic Investment
The equity portion includes investments from prominent Canadian technology founders, including Tobi Lütke, CEO of e-commerce platform Shopify, Stewart Butterfield, Founder of workplace messaging platform Slack, David Baszucki, CEO of gaming platform Roblox and Mike Wessinger, Executive Chair of healthcare software firm PointClickCare.
Existing investors Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures participated in the round, bringing Neo’s total funding to C$650m (US$465m) since its 2019 launch.
The funding arrives despite venture capital investment in fintech reaching its lowest point in five years, according to Neo Financial, highlighting the company’s growth trajectory in a challenging market.