Canadian spending and savings startup Neo Financial has raised C$25 million in a Series A funding round led by Peter Thiel's Valar Ventures.
Shopify founder Tobi Lutke, Golden Ventures, Inovia Capital, Thomvest, Afore Capital, Maple VC, FJ Labs, and District Ventures joined the round for Calgary-based Neo, which has also secured another C$25 million in debt financing.
Created by two of the co-founders of food courier company SkipTheDishes, Neo is aiming to shake up a Canadian market dominated by the big five banks with app-based high-interest savings account, provided by Concentra Bank, and a rewards-based credit card issued by ATB Financial.
Andrew Chau, CEO, Neo, says: "Now more than ever we are seeing the need for digital transformation in industries like banking, and Neo is at the forefront of that in Canada. Our team has set out to not only build new technology that challenges Canada’s existing financial sector, but also drives a cultural shift in how Canadians bank."