Nesto raises $216m Series E for AI lending growth

By Milan Rojan

Nesto has raised $216m in a Series E funding round, reaching a valuation of approximately $1.05 billion, as the company looks to accelerate the expansion of its AI-powered lending technology across financial services.

The funding round combined primary and secondary capital and attracted new investors including La Caisse, Fidelity Investments Canada ULC, PICTON Investments and Endeavor Catalyst. Existing investors Portage, Diagram, NAventures, National Bank of Canada’s corporate venture capital arm, Fonds de solidarité FTQ and Fondaction also participated in the round.

Malik Yacoubi, Co-Founder and Chief Executive Officer at Nesto, said, “We have executed with focus and consistency on our mission to build the mortgage ecosystem of the future. This new capital will allow us to accelerate our technology and AI development while onboarding partners at turbo speed.”

Nesto said the new funding will support the continued development and deployment of Nesto Cloud, its AI-powered lending platform, across the mortgage financing and broader financial services sectors. The company recently introduced Maestro AI, an AI-native orchestration platform designed to simplify mortgage operations and modernise financial workflows.

Founded to digitise and streamline the mortgage journey, Nesto has combined lending expertise with proprietary cloud technology and artificial intelligence capabilities. The company said it is now extending its technology beyond mortgage services to deliver AI-driven solutions for a wider range of financial institutions.

Kim Thomassin, Executive Vice-President and Head of Québec at La Caisse, said, “This investment reflects our confidence in nesto, a Montréal-based FinTech that stands out for its business model and innovative approach. By simplifying and modernising the mortgage experience, nesto is playing a tangible role in transforming the lending sector in Canada.

According to Nesto, the investment will help accelerate technology innovation, strengthen AI capabilities and enable faster onboarding of partners and clients. The company added that it has generated more than $37 billion in originations this year and has managed over $80 billion in mortgages under administration across Canada.