Canadian online mortgage lender Nesto has raised a $80 million Series C financing round led by IGM Financial, a unit of Power Corp.
The oversubscribed round included existing and new investors; Diagram Ventures, Portage, NAventures, National Bank of Canada’s corporate venture capital arm, BMO Capital Partners, as well as Michael Rowell and Michael Paulus.
“This investment from renowned financial institutions like IGM Financial, National Bank of Canada and BMO Bank of Montreal validates the hard work accomplished by nesto’s team in the last 4 years. The new round of funding will help us further develop best-in-class technology and service more Canadians through partnerships with financial institutions,” said nesto CEO and Co-Founder Malik Yacoubi.
The financing round will see IGM Financial acquire a minority stake in Nesto and enable the Montreal-headquartered fintech to further develop its proprietary technology, expand its marketing capabilities across Canada and launch nesto Mortgage Cloud.
Nesto intends to offer their Mortgage Cloud to financial institutions in order to support their ongoing digital transformation, search for efficiency and their continuing efforts to modernize their mortgage operations.
Nesto will begin by offering Mortgage Cloud to IG Wealth Management on a white-label basis in the next quarter, Nesto co-founder and Yacoubi told The Logic.
By doing so, nesto will diversify its customer base and revenue streams, and strengthen its position as the leader in digital mortgage lending.
“We’re very pleased to deepen our relationship with nesto by investing in this dynamic and growing company,” stated James O’Sullivan, President and CEO, IGM Financial. “Both our organizations are committed to transparency, digital enablement and enhancing Canadians’ access to homeownership.”