Calgary-born 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 brought together a broad mix of Canadian founders, entrepreneurs, and institutional investors, including Alberta Investment Management Corporation (AIMCo), Northleaf Capital Partners, Plaza Ventures, Sandstone Asset Management, and Caldwell Growth Opportunities Fund. The raise highlights growing confidence among domestic investors in a Calgary-founded fintech scaling nationally.
Neo said the capital will be used to launch its inaugural securitization program — a first for a Canadian fintech. By securitizing its credit assets, the company is adopting a capital-efficient funding model long used by large banks, allowing it to scale its lending portfolio without relying solely on equity-funded growth. The approach aligns Neo’s capital structure and risk management practices with those commonly used across Canada’s Tier 1 banking sector.
For Calgary’s technology ecosystem, the move represents a notable milestone. Securitization has historically been the domain of major financial institutions, while most fintechs rely on warehouse lines or balance-sheet lending to fund credit products. Neo’s ability to access this funding structure reflects both the maturity of its platform and the increasing sophistication of fintech companies emerging from Alberta.
Neo says its AI-driven credit models are central to enabling the program, supporting institutional-grade underwriting and more granular risk assessment at scale — requirements for operating a securitization vehicle of this size.
“Our goal has always been to build a generational company that is made in Canada, for Canadians,” said Andrew Chau, co-founder and chief executive officer of Neo Financial. “By unlocking the power and scale 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 of the country’s most successful entrepreneurs and institutional leaders is a strong vote of confidence as we enter our next phase of growth.”
Founded in Calgary, Neo has grown into one of Canada’s most prominent fintech platforms, with this latest raise positioning the company — and Alberta’s fintech ecosystem — at the forefront of innovation in consumer credit and financial infrastructure.
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