Montreal-based fintech startup nesto has raised a $76 million Series B funding round led by Michael Rowell and Michael Paulus, the entrepreneurs behind Assurance IQ, which was sold to Prudential Financial in 2019.
Founded in 2018, nesto is an online brokerage platform that streamlines the process of securing a mortgage. Their advisors help prospective homeowners find the best rates.
The company will use the funds to grow its experienced team of mortgage professionals and accelerate investments in new technology. Canada’s mortgage market is worth $450 billion per year.
“This new round of financing will enable us to reach even more consumers seeking the lowest rate for their mortgages right from the get-go,” said Malik Yacoubi, co-founder and CEO of nesto. “We are very grateful for the expertise of our investors as we set out to empower Canadians with a transparent and simplified mortgage process as they make one of the most important financial decisions in their lives.”
Nesto follows a similar playbook as companies in the U.S. like Better.com, which has a US-$6 billion valuation, and Rocket Mortgage.
nesto has experienced significant growth over the past 12 months, with a 475% increase in mortgage applications originated on their platform while maintaining an outstanding borrower experience with a net promoter score of 76 (NPS).
Also participating in the financing round were Portage Ventures, Diagram Ventures, Breyer Capital, Marc Alloul and other strategic investors.
“It’s undeniable that a growing segment of the population is looking for more simple, empowering and transparent financial services,” said Paul Desmarais III, Executive Chairman of Portage Ventures. “nesto’s digital mortgage solution delivers exactly that.”