KOHO, a Canada-based challenger bank that offers Canadians an alternative to traditional banking, has reportedly secured $70 million through its Series C funding round. According to BetaKit, the funding round was led by TTV Capital with participation from Drive Capital and Portag3 Ventures. The latest investment round comes just a little over a year after KOHO raised a total of $42 million through its Series B round.
As previously reported, KOHO is offering a new approach to spending and saving. The startup recently reported that in less than two years, it has grown to more than 120,000 accounts, and has moved its HQ to Toronto as well as released 43 new versions of the app. KOHO operates as both a chequing and savings account, which means users can spend, save, and earn, all in one place. Customers may opt into KOHO Save in the app and their entire balance will start earning 1.2% interest right away.
“KOHO is a new era of banking, rooted in the belief that a better banking experience exists. We’ve set out to build it for all Canadians, from Tofino to Fogo Island. We’re restoring financial balance by empowering people through their finances. For us, our values are more than just words. They are a way of living. We only create financial products that are open, intuitive, and designed to help you live a better life. Everything we do is for our customers.”
KOHO Founder and CEO, Dan Eberhard, revealed to the media outlet that the investment round included secondary financing on top of the $70 million but did not disclose the amount. Eberhard did confirm that the deal did not change its board of directors, which includes two Portag3 seats, one for Drive, one independent, and one for Eberhard.
“The fair observation here is KOHO is well-defined as the market leader in this space in Canada and we’ll continue to accelerate in that positioning with the capital that will be put into work over the next 12 months.”
The investment round’s funds will be used specifically to increase the awareness of KOHO’s current products.