Calgary-based Neo Financial has raised $68.5 million in an oversubscribed funding round led by a syndicate of more than 100 Canadian investors, at a higher valuation than its $362-million Series D round led by China’s Tencent in the fall of 2024.
The round drew participation from a broad group of Canadian founders, entrepreneurs, and institutions, including Alberta Investment Management Corporation (AIMCo), Northleaf Capital Partners, Plaza Ventures, Sandstone Asset Management, and Caldwell Growth Opportunities Fund. The financing underscores growing domestic investor confidence in Canadian-founded fintech platforms operating at national scale.
Neo said the capital will be used to launch its inaugural securitization program, a first for a Canadian fintech. By securitizing its credit assets, Neo is adopting a capital-efficient funding model long used by large banks, allowing it to scale its lending portfolio without relying exclusively on equity-funded growth. The approach enables the company to expand credit issuance while aligning its risk management and capital structure with practices common across Canada’s Tier 1 banking sector.
Securitization has historically been out of reach for most Canadian fintechs, which typically depend on warehouse lines or balance-sheet lending to fund growth. Neo’s move signals a maturation of the domestic fintech market, as non-bank platforms begin accessing funding structures traditionally reserved for incumbent financial institutions.
Central to the program are Neo’s AI-driven credit models, which the company says enable more granular risk assessment and underwriting discipline at scale. These models are designed to support institutional-grade credit performance, a prerequisite for operating a securitization vehicle of this size.
“With this milestone, we’re unlocking a new phase of growth for Neo,” said Andrew Chau, co-founder and chief executive officer of Neo Financial.
“By accessing the scale and efficiency of securitization, we can challenge the financial status quo that has held back Canadians’ financial progress for decades. Having the backing of more than 100 Canadian founders and institutional leaders is a strong vote of confidence as we continue building a generational company made in Canada, for Canadians.”
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