Neo Financial has raised a Series C round at a valuation of more than $1 billion, the company said, making it the latest of a growing crop of Canadian fintechs to reach that milestone. Here’s what you need to know:

The round: Peter Thiel’s Valar Ventures, a returning backer, led the $185-million round, bringing the total amount of capital Neo has raised to $299 million. New investors in the round included Tribe Capital, Gaingels and Knollwood Investment Advisory. Some early investors and employees also cashed out through a secondary share offering. CEO Andrew Chau wouldn’t specify the company’s previous valuation or disclose its revenue, but called the new valuation a “significant step up” from its Series B in September.

Breakneck speed: Neo, which has said it wants to compete directly with Canada’s largest banks, offers spending cards, high-interest savings accounts and investment products. With headquarters in Calgary and Winnipeg, it’s raised capital and expanded its operations at a fast clip since a group of SkipTheDishes founders launched it just three years ago. The company now has more than 650 employees and claims more than one million customers around the country, as well as partnerships with over 7,000 retailers. Chau said the company’s rapid growth reflects its traction among users as well as the size of the market it is targeting. 

Shifting climate: The raise comes amid uncertain times for some consumer-focused fintechs. Affirm and Robinhood are struggling in the public markets. Venture funding for Canadian startups has shown signs of a market-wide slowdown amid surging inflation and geopolitical tensions, according to data from PitchBook. And many companies have been more cost-conscious as investors tighten their purse strings. “It absolutely is a consideration,” Chau said. “At the same time, we are going after such a large market. We have had significant growth over the last year, and we want to continue investing in growth.”

More products: Neo will be investing its capital into newer areas for the company like buy-now, pay-later products, point-of-sale financing and loyalty services for retailers. That will bring it into competition not just with banks, but also with larger fintechs that offer similar services, like Square, Klarna and Affirm. Through its existing products, Neo already has relationships with large retailers like Hudson’s Bay, Boston Pizza and Goodfood.