Business & Finance
Canadian Fintech Company Secures $120M in Series C Funding
The Toronto-based startup aims to revolutionize digital banking solutions for small businesses across North America.
2025-06-21 17:08 | By Amelia Brown
A Toronto-based fintech company has captured national attention after securing $120 million CAD in Series C funding to accelerate its expansion across North America. The digital banking startup, known as Neo Financial Solutions, specializes in providing innovative services tailored to small and mid-sized businesses.
The funding round, led by prominent venture capital firm Horizon Growth Partners and supported by several institutional investors, marks one of the largest Canadian fintech raises of the year. The capital injection will support the development of new features, expansion into U.S. markets, and recruitment of top tech talent.
Neo Financial Solutions offers a fully digital banking platform, complete with integrated invoicing, payroll, and cash flow management tools. Its services are designed to streamline operations for small business owners who often face challenges navigating traditional financial institutions.
CEO Priya Malhotra described the funding as a major milestone. 'We’ve built a solution that puts small businesses at the center of the financial experience. This funding allows us to scale with confidence and continue building products that meet real-world needs,' she said.
Founded in 2019 by a group of University of Waterloo alumni, the company has grown rapidly, doubling its user base year-over-year. Its client roster now includes over 40,000 small businesses across Ontario, British Columbia, and Alberta.
The platform’s appeal lies in its user-friendly interface and AI-powered analytics, which provide actionable insights into spending, budgeting, and growth opportunities. Clients also benefit from transparent pricing and 24/7 customer support, two features that have earned Neo high marks in industry reviews.
Investors point to the company’s strong market positioning and customer loyalty as key drivers of its valuation. 'Neo has demonstrated the ability to disrupt a legacy industry while maintaining a strong focus on service and security,' noted Horizon’s managing director, Dan Everett.
With the new funding, Neo plans to open a second headquarters in Toronto’s Financial District, adding over 150 jobs in engineering, marketing, and customer success roles. The move reflects the broader growth of Toronto as a tech and financial services hub.
Industry observers see Neo’s success as part of a larger trend toward embedded finance and fintech innovation in Canada. The country’s regulatory environment and highly educated workforce have helped cultivate a thriving ecosystem of startups challenging traditional banking models.
Neo is also exploring partnerships with e-commerce platforms and accounting software providers to deepen its service offerings and integrate more seamlessly into business workflows. Beta testing for these integrations is already underway with select partners.
Financial analysts suggest that Neo could pursue an IPO within the next two years if its growth trajectory continues. Such a move would further cement Canada’s position as a global fintech player and potentially open the door for more domestic tech listings on public exchanges.
As the company enters this new chapter, it remains focused on its mission to empower small businesses through technology. 'This is more than just funding—it’s a vote of confidence in the vision we’ve built and the community we serve,' said Malhotra.