Canadian savings fintech Koho raises C$86m
The company provides users with a full-service spending and savings account and a pre-paid credit card
Canadian fintech Koho has raised C$86m Series D and surpassed one million users.
The alternative banking app for Canadians said the round prices it at a valuation of around C$800m, roughly where it was in 2021.
Koho attributed its success to the growth of its product range, which now includes credit building, free credit score checking and a five per cent savings rate.
“We started this company because we felt there was a better option. Canadians deserve simple solutions when it comes to spending, borrowing, getting paid, and building wealth,” CEO Daniel Eberhard said
“These tools should work together to make Canadians feel that progress is possible and accessible.”
The funding came from new and existing investors, including Drive Capital, Eldridge Industries, HOOPP, Portage, Round13, BDC and TTV.
“When we look across the global fintech landscape, it is clear that more and more consumers are choosing newer, mobile-first technology startups that simplify their financial lives,” Drive Capital partner Chris Olsen said.
“Koho is emerging as the winner in Canada and we’re thrilled to continue to support this ambitious team and mission.”
The no-fee spending and savings account comes with a prepaid credit card app and allows users to load funds and then earn cashback on purchases, combining a spending account with the perks of a credit card.