Neo Financial Canada has become the country’s latest tech startup unicorn after crossing $1 billion in its latest series C funding round.
Founded in 2019 by the same guys who brought you Skip the Dishes – Andrew Chau and Jeff Adamson – with Kris Read, the Calgary-based financial company announced that it had raised $185 million in its latest funding round, which featured the New York-based Valar Ventures as the lead investor.
This latest round of fundraising is based on a valuation of more than $1 billion.
This makes Neo Financial one of the few members of the unicorn club – a term used in the startup world to denote just how rare it is to be valued at that level.
This latest round of fundraising brings the amount raised by Neo Financial Canada in the past 3 years to over $300 million with Valar Ventures participating along with the following:
- Tribe Capital
- Altos Ventures,
- Blank Ventures,
- Gaingels,
- Maple VC, and
- Knollwood Advisory.
Neo Financial has built this kind of buzz based on the strength of its user-friendly banking technology and products, which it says is already being used by over 1 million customers. Its product line includes a Neo Mastercard, which gives its users cash back, and high interest savings accounts.
In addition, it also offers “Neo Invest” – called Canada’s first actively managed, fully digital investment vehicle It will also offer a mortgage product before the conclusion of 2022.
Continuing to grow, Neo Financial has 650 employees and is hiring for over 100 people in its Winnipeg and Calgary offices.
It is part of a boom in Alberta’s tech sector as the province works hard to diversify its economy beyond oil and gas. According to reports from the Canadian Venture Capital and Private Equity Association, the province broke its own record for venture capital investment in 2021 at $561 million and a 64% increase in total deal count.
Let’s take a closer look at their two flagship credit card products below.
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A Neo Financial Mastercard that’s far from standard
Neo Financial Canada’s flagship product, the
- Average of 5% cash back at partner retailers
- 1% cash back on gas, up to $500 spent monthly
- 1% cash back on groceries, up to $500 spent monthly
There’s also no income requirements, no annual fee, and you only need a credit score of 600 to be approved for the card.
Canada’s first secured card with rewards
The
- Average of 5% cash back at partner retailers
- 1% cash back on gas, up to $500 spent monthly
- 1% cash back on groceries, up to $500 spent monthly
It’s also incredibly easy to qualify for and use this secured card with only a $50 deposit necessary to start using it, along with guaranteed approval, no matter your credit score, with no hard credit check required.
In addition, there’s no income requirements and no annual fee needed to qualify.
You can see why it was the co-recipient of the best secured credit card award of 2022.
Your Turn
Do you have a Neo Financial credit card or any of its other financial products?
If so, what do you think so far? Is the $1 billion valuation justified in your opinion?
Tell us in the comments below!
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