nesto Raises $76M Series B to Offer Canadians A Better Mortgage Experience
Jun 10, 2021
We are proud to share that nesto closed $76M in Series B funding to help grow their team of mortgage professionals and accelerate investments in technology that will help offer Canadians a better mortgage experience from the get-go.
This round of funding was led by Michael Rowell and Michael Paulus, the entrepreneurs behind Assurance IQ, which was sold to Prudential Financial in 2019. Diagram joined Portage Ventures, Breyer Capital and a number of other strategic investors to participate in the round. This is the second investment from our growth-stage Opportunity Fund.
A Positive, Empowering and Transparent Mortgage Experience
“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.
In 2018, trends suggested that current and prospective homebuyers – regardless of their age – were turning to digital tools for mortgages and renewals. While other existing online products were available, they acted only as rate aggregators, i.e. they only fetched rates for clients. There was an opportunity to build a solution to use AI-powered technology to screen the market instantly and provide tailored recommendations to its clients while providing the support of commission-free advisors who are incentivized only by customer satisfaction.
In an increasingly digital-first world, nesto was born. It simplifies the mortgage process through digitization: offering Canadians the choice and flexibility to secure the lowest rate from anywhere and at any time. By responding to a consumer need for increased transparency and convenience, nesto is at the forefront of changing the way that Canadians shop for a mortgage, while ensuring they can save thousands of dollars in the process. In addition to rates, Canadians looking for a new mortgage, renewal or refinancing can also count on nesto for unbiased advice from one a qualified mortgage advisor.
nesto’s approach is working: 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).
Congratulations to the team on this exciting milestone, we’re proud of how far you’ve come, and excited to see where the next phase of your journey takes you!