Canadian FinTech Neo Financial has declared that it has raised CAD $50 million in a Series A funding round that consist of $25 million in funding and $25 million in debt facility financing.
The funding was led by Valar Ventures, a VC firm founded by James Fitzgerald, Andrew McCormack, and Peter Thiel. Other investors consist of Shopify CEO and founder Tobi Lutke, Golden Ventures, Inovia Capital, Thomvest, Afore Capital, Maple VC, FJ Labs, and District Ventures.
The $25 million debt facility was done with ABT Financial.
“We’re excited to partner with the team building Neo Financial,” said Andrew McCormack, a founding partner of Valar Ventures. “They are building a powerful technology platform which provides the modern banking services consumers around the world have come to expect and are still not getting from the traditional banks in Canada.”
“We see massive opportunities for new entrants in the banking industry globally, particularly in places dominated by a few old banks that have gotten too comfortable and forgotten how to innovate,” McCormack added. Neo said the cash will support it to expand its offerings in Canada. It also wants to create more products for customers that may be underserved due to problems with credit scores, financial history or literacy. The company also proposes to introduce more mobile banking features and greater flexibility, such as monthly subscription plans to increase Neo Cards rewards.