Canadian fintech Neo Financial adds AIMCo, Northleaf Capital as investors

The Neo Financial office building is shown in Calgary in a company handout photo. (THE CANADIAN PRESS/HO-Neo Financial)

Calgary-based fintech firm Neo Financial has raised $68.5 million in a new round of funding that includes investments from Alberta pension fund AIMCo, private equity firm Northleaf Capital Partners and several other Canadian investors.

The capital will be used to fund Neo’s securitization program, which will allow it to grow its lending portfolio without solely relying on equity-funded lending, the firm said.

Neo and other Canadian fintech firms are challenging Canada’s traditional banking landscape, which is largely dominated by the big six banks, by offering lower-cost alternatives and digital services.

Led by three co-founders of Canadian food delivery service SkipThe Dishes, Neo has so far raised more than C$700 million with investors including China’s Tencent and Shopify’s CEO Tobi Lütke. The company, however, struggled as its valuation at the end of its previous round in 2024 was at a steep discount.

Jeff Adamson, one of the co-founders, said the latest round is at a higher valuation than Neo’s previous round in 2024, but declined to share specific details.

(Reporting by Nivedita Balu in Toronto, Editing by Nick Zieminski)