nesto, Canada’s online mortgage lender, announced today the closing of an oversubscribed $80 million Series C financing. The financing round was led by IGM Financial, Inc, with support from existing and new investors; Diagram Ventures, Portage, NAventures, National Bank of Canada’s corporate venture capital arm, BMO Capital Partners, as well as Michael Rowell and Michael Paulus.
The Series C financing round will enable nesto to further develop its proprietary technology, expand its marketing capabilities across Canada and launch nesto Mortgage Cloud.
nesto intends to offer the nesto Mortgage Cloud to financial institutions in order to support their ongoing digital transformation, search for efficiency and their continuing efforts to modernize their mortgage operations with best-in-class technology for an effortless customer experience. By doing so, nesto will diversify its customer base and revenue streams, and strengthen its position as the leader in digital mortgage lending.
“We’re very pleased to deepen our relationship with nesto by investing in this dynamic and growing company,” stated James O’Sullivan, President and CEO, IGM Financial. “Both our organizations are committed to transparency, digital enablement and enhancing Canadians’ access to homeownership.”
“This investment from renowned financial institutions like IGM Financial, National Bank of Canada and BMO Bank of Montreal validates the hard work accomplished by nesto’s team in the last 4 years. The new round of funding will help us further develop best-in-class technology and service more Canadians through partnerships with financial institutions,” said nesto CEO and Co-Founder Malik Yacoubi.
