Montreal-based online mortgage company Nesto has secured C$76 million in a Series B financing. The round was led by Michael Rowell and Michael Paulus, founders of Assurance IQ, with participation from Portage Ventures, Diagram Ventures, Breyer Capital, Marc Alloul and others. Nesto last year closed a C$11.5 million Series A financing.
MONTREAL, June 10, 2021 (GLOBE NEWSWIRE) — nesto, the Canadian company on a mission to offer a positive, empowering and transparent mortgage experience, today announced the closing of a $76 million Series B funding round led by Michael Rowell and Michael Paulus, the entrepreneurs behind Assurance IQ, which was sold to Prudential Financial in 2019. The company will use the funds to grow its experienced team of mortgage professionals and accelerate investments in new technology.
Also participating in the financing round were Portage Ventures, Diagram Ventures, Breyer Capital, Marc Alloul and other strategic investors.
“This new round of financing will enable us to reach even more consumers seeking the lowest rate for their mortgages right from the get-go,” said Malik Yacoubi, co-founder and CEO of nesto. “We are very grateful for the expertise of our investors as we set out to empower Canadians with a transparent and simplified mortgage process as they make one of the most important financial decisions in their lives.”
To meet the needs of Canadians looking for a new mortgage, renewal or refinancing, nesto offers Canadians the lowest mortgage rates right from the start. To further meet the demands of customers in a digital-first world, nesto allows Canadians to secure the best suited mortgage for them based on their exclusive online solution while still getting unbiased advice from one of their mortgage advisors.
The company has experienced significant growth over the past 12 months, with a 475% increase in mortgage applications originated on their platform while maintaining an outstanding borrower experience with a net promoter score of 76 (NPS).
nesto is banking on the simplification of the mortgage process through digitization and has partnered with successful financial entrepreneurs, who share not only its values but also its vision of the current and future mortgage market.
“nesto gives Canadians choice, the lowest rate and the ability to secure a mortgage from anywhere, anytime,” said Michael Rowell, co-founder of Assurance IQ. “We have seen Canadians shift to digital-first solutions in many verticals including insurance and investments. Mortgage is the next frontier, and nesto is uniquely positioned as the leading player in this space.”
“Consumers are looking for increased transparency, whether they are shopping for insurance or a mortgage,” said Michael Paulus, co-founder of Assurance IQ. “nesto is changing the way Canadians shop for a mortgage and helping them save thousands of dollars in the process.”
“It’s undeniable that a growing segment of the population is looking for more simple, empowering and transparent financial services,” said Paul Desmarais III, Executive Chairman of Portage Ventures. “nesto’s digital mortgage solution delivers exactly that.”
nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish. The company empowers Canadians with tools, guidance, and most importantly the confidence to make an informed decision for the most important financial commitment of their lives. With technology, nesto seamlessly offers the best suited mortgage options so that Canadians can secure the best mortgage and save thousands in interests – no negotiation needed. nesto’s mortgage professionals provide unmatched support (as little or as much as needed) along the way. For more information, visit nesto’s website.