Home / Business and Economy / KOHO Secures $92.9M, Eyes Canadian Banking License
KOHO Secures $92.9M, Eyes Canadian Banking License
12 Jun
Summary
- KOHO secured C$130m ($92.9m) in fresh funding, valuing the company at C$1.33bn.
- New investors include Abu Dhabi's Mubadala and Shopify CEO Tobi Lütke.
- The funds will support expansion and are key to obtaining a federal banking licence.
Canadian fintech company KOHO has announced a significant funding round, securing C$130m ($92.9m) and achieving a valuation of C$1.33bn. This latest financing round saw participation from notable new investors, including Mubadala, the sovereign investor from Abu Dhabi, and Savano Capital.
The influx of capital is pivotal for KOHO's strategic goal of obtaining a federal banking licence in Canada. Company leadership stated that these funds represent the required starting capital base for a federally regulated bank. The funding will also fuel the expansion of KOHO's core product offerings, such as spending and savings accounts, credit-building services, and overdraft protection.
With over 2.5 million users in Canada since its establishment in 2014, KOHO aims to enhance its services with a banking licence, promising lower costs and greater product flexibility. This funding marks a critical step in its regulatory process, pending ministerial approval. The company has raised a total of C$507m to date.
