(Reuters) – Neo Financial has raised C$360 million ($258.53 million) in its latest funding round, it said on Monday, as the Canadian financial technology company looks to compete against traditional banks.
The latest fundraising round included participation from multiple Canadian entrepreneurs, such as Shopify CEO Tobi Lütke, former Slack CEO Stewart Butterfield and Roblox CEO David Baszucki.
The Series D financing round, which includes C$110 million of equity and C$250 million of debt, also saw participation from Neo’s existing investors — including Valar Ventures, Golden Ventures, Afore Capital and Thomvest Ventures.
“Neo Financial’s growth over the last 4 years reflects Canadians’ strong demand for alternatives to traditional banking,” CEO Andrew Chau said.
Fintech venture capital funding has been subdued in recent years as higher interest rates and inflation curbed the pre-pandemic era of cheap money.
Neo has raised more than C$650 million in funding since inception in 2019. It offers eight products including credit and prepaid cards, banking products and investment offerings.
“We need a culture of going for gold in Canada and this is precisely what the team at Neo Financial has,” Tobi Lütke said.
The new funding will allow Neo to expand its suite of financial services products.
Additionally, Neo also announced the opening of its Toronto office on Bay Street. It already has offices in Calgary and Winnipeg.
($1 = 1.3925 Canadian dollars)
(Reporting by Arasu Kannagi Basil in Bengaluru; editing by Alan Barona)