Cyder Secures $3M Seed Round to Fuel Growth of Credit Union Loyalty Platform

A Canadian financial technology startup targeting loyalty innovation for credit unions this week revealed a round of fundraising.

The round, oversubscribed at $3 million, comes one year after Cyder’s last funding.

The seed financing for the Toronto firm was led by Conexus Venture Capital with participation from participation from MaRS IAF, Graphite Ventures, and Sprout Fund.

The investment will enable Cyder to “expand marketplace partnerships, accelerate onboarding of additional credit unions, and continue scaling its platform across the United States and Canada,” according to a statement from the Ontario fintech, which today represents more than 1.5 million members across North America through its partners.

“Credit unions have always led with relationships,” says cofounder Sukhman Dulay, who serves Cyder as chief executive officer. “Loyalty programs simply bring that strength into the digital era.”

The company began in 2021 as a data platform for banks, but pivoted following feedback, says Dulay.

“When speaking to credit unions, we quickly discovered that there is no loyalty solution for them on the market,” Dulay remarked in 2024. “Most credit unions we spoke to would ask us to develop a loyalty solution for them.”

As competition in financial services intensifies and member expectations rise, Dulay suggests that loyalty has become a strategic priority for credit unions looking to retain and deepen relationships with both long-standing members as well as the next generation of digital-first consumers.

“We’re seeing a clear shift,” says cofounder Will Christodoulou. “Credit unions aren’t asking whether they need loyalty—they’re deciding how fast they can launch it.”

Cyder enables credit unions to reward over 100 different behaviours, like opening accounts, staying on track with goals, engaging digitally, and supporting local businesses.

Cyder was named one of Plug and Play’s Top 5 Canadian Startups in 2023, and was also selected as a Berkeley SkyDeck Batch company and recognized by NEXT Founders Canada as a Top Venture.