Canadian fintech startup KOHO raises $25 million

Six months after announcing a Series B round, Toronto-based FinTech  KOHO is pleased to close an extension with $25 million of new capital from industry-defining partners. The round was led by U.S.-based venture capital firm Drive Capital, whose portfolio boasts Duolingo, Udacity, and Root Insurance. National Bank of Canada, through its venture capital arm NAventures, also participated in the round.

The capital injection from an international and established player like Drive Capital is a testament to KOHO’s rapid growth. What’s more, it serves as a vote of confidence in the FinTech’s customer-focused product roadmap and further establishes the company as a leader in the democratization of financial services.

The announcement comes as KOHO – only two and a half years in the market – welcomed its 175,000th user to its platform, launched a popular Premium offering and continues to maintain a 4.8/5 star rating in the App Store. The FinTech disruptor currently has a 40,000-person strong waitlist for Canada’s first prepaid metal cards.

“We’re really looking forward to bringing both Drive and National Bank on board. We had more interest in the round than we chose to take, and decided to focus on partners who bring strategic value. Our team is world-class and the combination of Drive, National Bank, and Portag3 means we have everything we need to restore balance to Canadians. We couldn’t be more excited for the next stage of KOHO’s journey.” – Daniel Eberhard, Founder and CEO of KOHO.

“When we look across the global FinTech landscape, it is clear that consumers are increasingly choosing newer, mobile-first technology startups that simplify peoples’ financial lives. KOHO is a wonderful example of this.” – Chris Olsen, Partner at Drive Capital.

KOHO’s Series B round was led by Portag3 Ventures and included investment from Greyhound Capital.

The additional capital will allow KOHO to continue to deliver and scale the company’s bold mission to bring transparent and intuitive financial products to Canadians.