Koho Raises $42M
Toronto-based fintech startup Koho announced a $42m Series B round led by Portag3 Ventures, with participation from Greyhound Capital.
Launched publicly in 2017, Koho positions itself as an alternative to the traditional banking experience, offering personal and joint accounts with different features such as automated savings, shared goals, referral rewards, and ability to split expenses to name a few.
Koho doesn’t have a Canadian banking license and if offers banking services through partnerships with Visa and Peoples Trust Company. The startup doesn’t charge users any fees and it makes money by splitting the interchange fees with Visa when users pay using their Koho-Visa card. To date, Koho has over 120k accounts and has reached $500m in annualized transactions.
“KOHO’s mission is to restore balance to Canadians by giving them control over their own finances. This new funding is both validation of what we’ve done and a vote of confidence for the work left to do.” – Founder and CEO of KOHO, Daniel Eberhard.
“The Canadian market is ripe for an alternative banking solution and we believe KOHO’s recent customer adoption is validation for this thesis. Portag3 is in a unique position to further accelerate this growth through our LPs and growing the Canadian fintech ecosystem.” – CEO of Portag3 Ventures, Adam Felesky.