 | This article contains promotional content .(December 2023) |
 | |
| Company type | Private |
|---|---|
| Industry | Mortgage brokerage and mortgage lending |
| Founded | 2018 |
| Headquarters | Montreal, Canada |
Key people |
|
| Website | nesto |
Nesto Inc. (styled as nesto) is a Canadian fintech company and digital mortgage broker based in Montreal, Quebec.
Nesto was founded by Malik Yacoubi and Karim Benabdallah. The two then collaborated with Diagram's Daniel Robichaud, who suggested enhancing transparency in Canada's mortgage market. In 2018, joined by Chase Belair and Damien Charbonneau, they established nesto. The product was launched in 2019. [2]
In June 2020, nesto raised CA$11.5 million in Series A funding. [3]
In January 2021, nesto announced a partnership with real estate agency Proprio Direct. [4] [5] In May 2021, Equitable Bank launched a digital mortgage service in partnership with nesto. [6] [7]
By June 2021, nesto had partnered with 11 mortgage providers, including Toronto-Dominion Bank. The company also raised CA$76 million in a Series B round that month led by PCM Encore, the Family Office of Michael Paulus. [2]
As of June 2021, 50% of Nesto's mortgage volume was in Quebec, 40% in Ontario, and 10% elsewhere in Canada. [8] [ needs update ]
In December 2022, IGM Financial purchased a minority stake in nesto [9] and partnered with the company for the launch of its Mortgage Cloud service, stating that nesto would provide white label mortgage services to IG clients. [10] [11] Nesto secured CAD $80 million (USD $58 million) in Series C funding that same month. [12] [13] [14]
By the end of 2022, the company had raised over CA$165 million. [15] Investors included Investissement Québec, BMO Capital Partners, the National Bank of Canada’s corporate venture capital arm, NAventures, Portage Ventures, and Power Corporation of Canada. [2] [11]
In December 2023, Canada Life announced that the company had entered into a partnership with nesto. The move followed Canada Life's decision to exit the residential mortgage market in 2022, with Nesto taking over the management of existing and maturing mortgages. [16]
In April 2023, nesto was the national lender with the lowest rate. [17]
Nesto is an online lender that allows users to find and compare mortgage rates. [18] [19] The platform automates parts of the mortgage application and underwriting, providing mortgage and refinancing rates that are more competitive than those offered by conventional banks and brokers. [18] [20] [21] The application process is handled entirely online. Access to nesto's product requires a credit score of at least 650. [22]
In June 2022, nesto introduced a 150-day rate hold, allowing customers to lock in a rate as protection against potential future increases and encouraging them to move their existing mortgages to nesto; [18] their 150-day rate hold is the longest in Canada. [22]
Nesto is based in Montreal, licensed and operating in all Canadian jurisdictions. [21]
According to the Financial Post , nesto had a Net Promoter Score of 77, in 2021 more than double the average score for banks and financial services. [23]
According to La Presse , nesto ranked among the top third of international companies on a scale of rapidly growing companies in December 2022. [24]
In 2023, Deloitte recognized nesto as one of Canada's fastest growing tech companies. [25] Nesto also received the Mortgage Lender of the Year Award from the Canadian Lenders Association (CLA). [26]