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Nesto Secures $302 Million Series E, Valuation Near $1.5 Billion, to Expand AI-Driven Mortgage Platform
Nesto, the Montreal‑based digital mortgage lender, announced a $302 million Series E round on Wednesday that combined $107 million in primary capital with $195 million in secondary capital, pushing the company’s valuation to roughly $1.5 billion Canadian dollars.
The round was led by new backers La Caisse, Fidelity, Picton Investments and Endeavor Catalyst, and joined by returning investors Portage, Diagram, NAventures, Fonds de solidarité FTQ and Fondaction. The capital will be earmarked for expanding Nesto’s technology stack and artificial‑intelligence (AI) capabilities, with the stated goal of accelerating partner and client onboarding while scaling its platform.
The announcement coincided with the launch of Maestro AI, a tool the firm claims can underwrite a mortgage in less than two minutes—a dramatic improvement over the industry’s typical one‑day processing time. “I think in the AI world today, when you have the deep knowledge, expertise in a specific vertical, and you marry that with technology and AI solutions, this is where you can make magic happen,” co‑founder and CEO Malik Yacoubi told BetaKit.
Nesto’s evolution from a direct‑to‑consumer online lender to a mortgage‑ecosystem builder is reflected in the new platform. The company is now building white‑label technology for Canadian financial institutions, positioning itself as an end‑to‑end mortgage solutions provider rather than just a consumer‑facing broker.
The Series E round follows a 2024 acquisition of CMLS Group, Canada’s third‑largest mortgage finance company. That deal expanded Nesto from a 350‑person startup to a 1,100‑person organization and added commercial mortgage lending to its portfolio. According to the company, it now processes more than $37 billion in mortgage originations this year and administers over $80 billion in mortgages.
Built on cloud infrastructure, Nesto’s platform automates key parts of the mortgage application and underwriting process. The firm has been recognized in Deloitte’s Technology Fast 50 and has served more than 450,000 Canadians. Its AI‑ready architecture is designed to align underwriting decisions with policy and deliver consistent, data‑driven outcomes.
The new funding and Maestro AI launch are part of a broader trend in the Canadian mortgage market toward digital and AI‑enhanced lending. By integrating AI into underwriting, Nesto aims to cut processing times and improve risk assessment, potentially lowering costs for both lenders and borrowers.
Institutional investors such as La Caisse, the Quebec pension fund that manages public and parapublic pension plans, and Fidelity, a global asset‑management firm, signal confidence in Nesto’s technology strategy and its role in the Canadian mortgage ecosystem.
Nesto’s growth has been fueled by both organic expansion and strategic acquisitions. The 2024 purchase of CMLS Group was financed by an undisclosed Series D round, underscoring the company’s ability to raise capital to support its expansion plans.
Yacoubi has emphasized that the firm’s future lies in building a comprehensive mortgage ecosystem. “The launch is part of a continued pivot from a solely direct‑to‑consumer online mortgage lender to a mortgage ecosystem builder that builds white‑label tech for Canadian financial institutions,” he said.
The Series E funding will also back further development of Nesto’s AI capabilities, including machine‑learning models that analyze borrower data and market trends. By accelerating underwriting, the company expects to attract more institutional partners and increase its share of the Canadian mortgage market.
Moving forward, Nesto must navigate regulatory requirements for mortgage lending and data privacy, compete with traditional banks and other fintech entrants, and continue scaling its platform, onboarding additional partners, and potentially exploring further acquisitions to broaden its service offering.
In summary, Nesto’s $302 million Series E round and the launch of Maestro AI mark a significant milestone in the company’s evolution from a consumer‑facing lender to a technology provider for the Canadian mortgage industry. The funding will enable the firm to accelerate AI integration, expand its partner network, and sustain its growth trajectory in a rapidly digitalizing market.
The round was led by new backers La Caisse, Fidelity, Picton Investments and Endeavor Catalyst, and joined by returning investors Portage, Diagram, NAventures, Fonds de solidarité FTQ and Fondaction. The capital will be earmarked for expanding Nesto’s technology stack and artificial‑intelligence (AI) capabilities, with the stated goal of accelerating partner and client onboarding while scaling its platform.
The announcement coincided with the launch of Maestro AI, a tool the firm claims can underwrite a mortgage in less than two minutes—a dramatic improvement over the industry’s typical one‑day processing time. “I think in the AI world today, when you have the deep knowledge, expertise in a specific vertical, and you marry that with technology and AI solutions, this is where you can make magic happen,” co‑founder and CEO Malik Yacoubi told BetaKit.
Nesto’s evolution from a direct‑to‑consumer online lender to a mortgage‑ecosystem builder is reflected in the new platform. The company is now building white‑label technology for Canadian financial institutions, positioning itself as an end‑to‑end mortgage solutions provider rather than just a consumer‑facing broker.
The Series E round follows a 2024 acquisition of CMLS Group, Canada’s third‑largest mortgage finance company. That deal expanded Nesto from a 350‑person startup to a 1,100‑person organization and added commercial mortgage lending to its portfolio. According to the company, it now processes more than $37 billion in mortgage originations this year and administers over $80 billion in mortgages.
Built on cloud infrastructure, Nesto’s platform automates key parts of the mortgage application and underwriting process. The firm has been recognized in Deloitte’s Technology Fast 50 and has served more than 450,000 Canadians. Its AI‑ready architecture is designed to align underwriting decisions with policy and deliver consistent, data‑driven outcomes.
The new funding and Maestro AI launch are part of a broader trend in the Canadian mortgage market toward digital and AI‑enhanced lending. By integrating AI into underwriting, Nesto aims to cut processing times and improve risk assessment, potentially lowering costs for both lenders and borrowers.
Institutional investors such as La Caisse, the Quebec pension fund that manages public and parapublic pension plans, and Fidelity, a global asset‑management firm, signal confidence in Nesto’s technology strategy and its role in the Canadian mortgage ecosystem.
Nesto’s growth has been fueled by both organic expansion and strategic acquisitions. The 2024 purchase of CMLS Group was financed by an undisclosed Series D round, underscoring the company’s ability to raise capital to support its expansion plans.
Yacoubi has emphasized that the firm’s future lies in building a comprehensive mortgage ecosystem. “The launch is part of a continued pivot from a solely direct‑to‑consumer online mortgage lender to a mortgage ecosystem builder that builds white‑label tech for Canadian financial institutions,” he said.
The Series E funding will also back further development of Nesto’s AI capabilities, including machine‑learning models that analyze borrower data and market trends. By accelerating underwriting, the company expects to attract more institutional partners and increase its share of the Canadian mortgage market.
Moving forward, Nesto must navigate regulatory requirements for mortgage lending and data privacy, compete with traditional banks and other fintech entrants, and continue scaling its platform, onboarding additional partners, and potentially exploring further acquisitions to broaden its service offering.
In summary, Nesto’s $302 million Series E round and the launch of Maestro AI mark a significant milestone in the company’s evolution from a consumer‑facing lender to a technology provider for the Canadian mortgage industry. The funding will enable the firm to accelerate AI integration, expand its partner network, and sustain its growth trajectory in a rapidly digitalizing market.
