Calgary’s Neo Financial has raised US$80M in equity financing, led by Chinese tech giant Tencent, valuing the fintech at US$510M—down sharply from its US$1B valuation in 2022. Tencent invested US$50M, securing a passive stake under 10% with limited rights. Neo, founded by SkipTheDishes co-founders, boasts 1.3M customers and $100M in annual revenue, aiming for profitability by 2025.
Questions surround the involvement of a Chinese backer, amid geopolitical concerns over data privacy. Neo insists customer data is secure and remains Canadian-controlled. The company continues its rapid growth, adding 100,000 customers per quarter and expanding into small-business banking.
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