Welcome to this week's Sunday Briefing. In this edition:
Low-carbon concrete could cut data centre emissions
Beckhoff opens a Calgary office for Alberta’s automation sector
PataBid raises $2 million pre-seed
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$185 million facility to expand Neo Financial’s credit card funding
Photo: Neo Financial
Calgary-based Neo Financial has closed a $185 million syndicated warehouse facility, giving the fintech more committed funding capacity for its credit card receivables. The facility’s accordion has also been increased, which supports upsizing it to $250 million.
ATB Financial put the syndicate together and took on the roles of administrative agent, lead arranger and sole bookrunner. Neo says the facility is meant to keep pace with the company’s growth as it adds to its credit card receivables.
The financing follows a period of change at the company. BetaKit reported in September that Neo was eliminating 102 roles, roughly 10 percent of its team, as part of a push to operate with a narrower focus. It also reported that Neo’s loyalty card partnerships with Tim Hortons and The Hudson’s Bay Company ended this year.
Four Canadian credit unions are part of the syndicate: Vancouver City Savings Credit Union (Vancity), Beem Credit Union, Alterna Savings and Credit Union Limited, and Innovation Federal Credit Union. Neo describes their participation as a sign of growing credit union involvement in its funding platform.
Allemander Neto, Neo’s chief financial officer, said credit unions are important partners in the financial system the company wants to help build. “We’ve invested in a credit card platform that other institutions can participate in,” he said. “Our ambition is to build lasting funding relationships with credit unions that see an opportunity to grow alongside us.”
Founded in 2019, Neo is headquartered in Calgary, Winnipeg and Toronto. The company says it serves more than one million customers with credit cards, chequing accounts, savings products and mortgages, and that it has raised more than $650 million in funding.
🤝 Funding and Deals
ResolvMD expands medical billing tech into Ontario. Calgary-born healthtech company says it’s also eyeing expansion into British Columbia. Betakit
PataBid raises $2M pre-seed. PataBid raises $2M in pre-seed funding led by Graphite Ventures to expand its AI-powered construction estimation platform across North America. The SaaS News
Calgary’s Carrot Ventures launches $150,000 food and agtech challenge. Carrot Ventures is looking for food and agriculture technologies ready to move from promising ideas to commercial businesses. Calgary.Tech
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📰 Need To Know
Low-carbon concrete could lower emissions before data centres even go online. Cleantech advocates say that greening the data-centre boom needs to start with construction. Betakit
Getting old is hard. This age-tech housing aims to make it easier. Garden Loft is part of a growing movement to build affordable housing for seniors to age in place. Betakit
Beckhoff opens Calgary office to support Alberta’s automation sector. The 2,900-square-foot space at 48 Quarry Park Boulevard SE is the automation and PC-based control technology company’s fourth Canadian location. Calgary.Tech