Malik Yacoubi, Co-Founder and CEO, nesto
Montreal-based mortgage technology company nesto has raised a $302 million Series E round, marking one of the larger late-stage financings in Canada’s fintech and proptech sector this year. The deal values the company at CAD $1.47 billion and combines both primary and secondary capital. The round signals continued investor appetite for infrastructure-style fintech platforms, particularly those targeting the mortgage industry, which nesto describes as a $2.1 trillion market in Canada.
The financing brought in a mix of new and returning institutional investors. New participants include La Caisse (formerly CDPQ), Fidelity Investments Canada ULC, PICTON Investments, and Endeavor Catalyst. Existing investors also increased their exposure, including Portage Ventures, Diagram, NAventures, National Bank of Canada’s venture arm, Fonds de solidarité FTQ, and Fondaction.
Building a Mortgage Infrastructure Platform
Nesto has positioned itself as more than a lender, operating a technology-first mortgage platform used across direct-to-consumer lending, broker channels, and multi-family commercial financing. The company reports more than $80 billion in mortgages under administration and over $37 billion in originations this year, alongside nationwide operations and profitability. Its growth has been recognized by industry observers, including three consecutive appearances on Deloitte’s Fast 50 list.
At the core of its platform is proprietary infrastructure, including “Nesto Cloud,” which powers its lending operations, and newer AI-driven systems designed to automate and streamline mortgage workflows.
Push into AI-powered Mortgage Operations
A key focus of the new capital is accelerating artificial intelligence development across the company’s platform. Nesto recently introduced Maestro AI, described as an AI-native orchestration system aimed at simplifying end-to-end mortgage operations and modernizing financial workflows.
The company says it plans to expand beyond mortgages over time, building broader AI-enabled financial services tools for institutions and partners. With this funding round, nesto intends to scale onboarding of partners more quickly and accelerate deployment of its technology stack across the lending ecosystem.
Speaking on the raise, co-founder and CEO Malik Yacoubi emphasized execution and scaling speed:
“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,” said Malik Yacoubi, Co-Founder and CEO of nesto. From the investor side, Kim Thomassin of La Caisse highlighted the company’s role in modernizing the Canadian lending sector:
“This investment reflects our confidence in nesto, a Montréal-based fintech that stands out for its business model and innovative approach. By simplifying and modernizing the mortgage experience, nesto is playing a tangible role in transforming the lending sector in Canada,” said Kim Thomassin, Executive Vice-President and Head of Québec at La Caisse.
With fresh capital and a valuation crossing the $1 billion threshold, nesto is now positioned among Canada’s more prominent fintech scaleups focused on core financial infrastructure. The company’s next phase centers on expanding its AI capabilities, deepening integration with financial institutions, and extending its platform beyond mortgage origination into broader financial services automation.
