Neo Financial has netted CAD 50m ($39.3m) in a funding round comprised of both debt and equity.
The equity investment was a CAD 25m ($19.6m) Series A round, which was led by New York-based venture capital firm Valar Ventures.
Other backers included Shopify CEO and founder Tobi Lutke, Golden Ventures, Inovia Capital, Thomvest, Afore Capital, Maple VC, FJ Labs and District Ventures.
In addition the equity injection, the FinTech received a CAD 25m ($19.6m) debt facility from financial partner ATB Financial.
The FinTech claims this is one of the largest Series A funding rounds to be closed in Western Canada.
Funding from the round will be used to support the rising demand of financial innovation and optionality in Canada, it said.
Founded in 2019, the Canadian FinTech offers a mobile app to help consumers get easier access to spending, saving and rewards. The mobile banking app earns users discounts at brands after spending, and offers a savings account with 1.55% interest.
Neo co-founder and CEO Andrew Chau said “With the tremendous support of our investors, particularly through the challenging circumstances of COVID-19, we’re accelerating the development of Neo’s product offerings and expansion across Canada.
“Now more than ever we are seeing the need for digital transformation in industries like banking, and Neo is at the forefront of that in Canada. Our team has set out to not only build new technology that challenges Canada’s existing financial sector, but also drives a cultural shift in how Canadians bank.”
Copyright © 2020 FinTech Global