In a spherical led by Valar Ventures, Neo Monetary, a fintech based mostly 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 way in which Canadians financial institution isn’t any simple feat, but it surely’s a problem that our workforce 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 workforce’s skill to unravel it.”
Going dwell final yr, Neo supplied a high-interest financial savings account, and a no-fee Mastercard that gives as much as 6% money again at partnering corporations and not less than 1% cashback throughout all different spending, known 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 this moment’s funding announcement comes on the heels of Neo’s buy of workplace house in Winnipeg’s Alternate District, enabling the corporate to open a second headquarters within the metropolis.
Becoming a member of at present’s Collection 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 Collection B spherical, introduced at present, Valar Ventures additionally led the corporate’s earlier spherical of funding – a $19.5 million (CAD $25 million) Collection A spherical – in December 2020.
“As one of many largest Collection B raises for a Canadian fintech, this new spherical of funding will permit us to proceed constructing progressive merchandise and options for all Canadians and companies,” Chau stated. “It’s an thrilling time to develop our workforce from each our Calgary and Winnipeg places of work.”
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.
Photograph by Mati Mango from Pexels