Vancouver-based fintech startup Koho Financial Inc has closed a second round of undisclosed financing, adding to its $1 million seed investment of last year. The new round was led Canadian management and holding company Power Financial Corp (TSX: PWF). It was joined by financial executives and technology entrepreneurs, including Rashay Jethalal, Adam Felesky, Scott Lake and David Tedman, as well as existing investors. Koho has developed a mobile account to manage day-to-day spending and saving. It plans to use the funds raised to enhance the product, introduce it to more users, and hire additional staff.
Koho Closes Funding Round, Launches Private Beta
The fintech startup’s latest round includes large public companies, banking executives, and founders of Canada’s leading tech companies.
VANCOUVER, BC (PRWEB) JULY 21, 2016
Koho Financial Inc. announced the closure of a second round of funding today. The round, which had strong follow-on participation from previous investors, was led by Power Financial Corporation (TSX:PWF) and includes Rashay Jethalal, the former Director of Global Banking at CIBC, Adam Felesky, former CEO of Horizons ETF, Scott Lake, Co-Founder of Shopify and Hello Ventures, and David Tedman, Co-Founder of Hootsuite.
“Daniel and his team have started by genuinely understanding the consumer’s needs,” said Rashay. “Koho offers a simple and elegant alternative to an underserved emerging market segment. It’s brilliant.”
Koho, through its mobile application and Visa prepaid card, offers what it calls the ‘core features’ of day-to-day spending and saving, including direct deposit, bill pay, ATMs, and transfers, as well as its own unique features, such as real-time updates, automated budgets and savings, personalized goals, and card blocking. Users’ deposits are held through Koho’s partnership with Peoples Trust, while the Visa* network provides the ability to make purchases everywhere Visa is accepted.
Koho’s private beta was recently released to a select few users for early testing and feedback, and will roll out to the remaining waitlist of more than 7,000 Canadians over the coming months.
The company, which closed an initial seed round of $1 million last June, plans on using the additional funds to continue improving its product, onboarding its waitlist, hiring, and layering on new features based on customer feedback.
“What makes us different is the speed of our iteration,” says CEO Daniel Eberhard. “We take feedback directly within the application and typically implement it within a matter of weeks. We’re on pace to update the Koho app more than 100 times this year, so we’re lucky to have such an active group of users willing to participate in the road map.”
About Koho Financial Inc.
Koho offers a simple, no-fee, mobile account to manage day-to-day spending and saving by combining a mobile app, Visa card, and secure account with Peoples Trust. The company was founded in 2014 by Daniel Eberhard and Stanley Park Ventures’ Joshua Bixby, Jonathan Bixby, and Mike Benna.
*Trademark of Visa International Service Association and used under licence by Peoples Trust.
**Koho Visa Prepaid Card is issued by Peoples Trust Company pursuant to licence by Visa Int.
Photo courtesy of Koho Financial Inc