Canadian fintech Neo Financial said it had raised $ 50 million in a Series A funding round.
The round was chaired by Valar Ventures, a VC firm founded by James Fitzgerald, Andrew McCormack and Peter Thiel. Other investors were Shopify CEO and founder Tobi Lutke, Golden Ventures, Inovia Capital, Thomvest, Afore Capital, Maple VC, FJ Labs and District Ventures.
The $ 25 million loan facility was signed with ABT Financial, Neo said in a statement.
“We are excited to partner with Neo Financial team building,” said Andrew McCormack, a founding partner of Valar Ventures. “They are building a powerful technology platform that delivers the modern banking services that consumers around the world have come to expect that they still cannot get from traditional banks in Canada.”
“We see tremendous opportunities for newcomers to the banking sector around the world, especially in places dominated by a few old banks that have gotten too comfortable and forgot how to innovate,” added McCormack.
Neo said the money will allow him to expand his offerings in Canada. It also aims to create more products for customers who may be underserved due to credit problems, financial history, or literacy issues. The company also plans to introduce more mobile banking features and greater flexibility, such as monthly subscriptions, to increase Neo Cards’ rewards.
The Calgary-based company recently expanded its Neo Mastercard services, which include cashback opportunities from partner stores in Edmonton, Winnipeg, Vancouver and other Canadian cities.
Neo’s credit card is issued by ABT and supported by the Mastercard network, while the Neo savings account is provided by Concentra Bank.
The company added that it is actively hiring and has 70 open positions in finance, marketing, operations, product and technology.
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