Toronto-based financial technology startup Koho has secured $42 million in a Series B financing.
Portag3 Ventures, an investment arm of Canadian holding company Power Corp, led the round. It was joined by U.K. growth equity firm Greyhound Capital and other strategic investors.
Portag3 also led Koho’s $8 million round in 2017.
Led by CEO Daniel Eberhard, who co-founded the company in 2014, Koho provides an integrated app and reloadable card to help more than 120,000 Canadian customers manage and gain insights about their spending and saving.
Koho will use the funds raised to accelerate growth and develop new products and services.
Canadian fintech KOHO raises $42 million in Series B funding round
TORONTO, May 15, 2019 (GLOBE NEWSWIRE) — KOHO announced today that it has closed a $42 million fundraising round led by Portag3 Ventures (“Portag3”), including Greyhound Capital and other strategic investors.
The announcement comes as KOHO, a fintech company that offers Canadians an alternative to their traditional banking experience, continues to see rapid growth.
In less than two years, KOHO has grown to over 120,000 accounts, moved their HQ to Toronto and released 43 new versions of the app. With over $500 million in annualized transactions and a KOHO card used every 4 seconds, KOHO has built a current account Canadians love (they boast a Net Promoter Score of 80 and App Store rating of 4.8/5 stars).
“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,” said Daniel Eberhard, Founder and CEO of KOHO.
Having raised $8 million from Portag3 in their Series-A funding round, KOHO is thrilled to continue the relationship with an investment from Portag3 Ventures LP II.
“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,” said Adam Felesky, CEO of Portag3 Ventures.
KOHO will use this investment to further accelerate its growth and build new products and services that are truly aligned with what Canadians need.
About Portag3 Ventures
Portag3 Ventures, the venture capital arm of multi-asset class alternative investment platform Sagard Holdings, is an early-stage investor dedicated to backing the next generation of innovative, global financial services companies working to benefit all consumers. Initially formed in 2016 as part of the Power Financial Corporation ecosystem in affiliation with Great-West Lifeco and IGM Financial Inc., Portag3 has since welcomed external investors to establish a leading, interconnected fintech ecosystem that successfully scales portfolio companies, shares key market insights, and leverages collective distribution power to drive financial services innovation across the globe. For more information, visit p3vc.com.
About Greyhound Capital
Greyhound Capital is a specialist growth equity investor focusing globally on subsectors where technology is transforming the way people spend, eat, move, work and live.
KOHO is a quickly scaling FinTech company that offers Canadians an alternative to their traditional banking experience. With an integrated app and reloadable Visa card, users get real-time insights into their money, along with instant cashback, round-ups, automated savings goals and more. Backed by Power Corp. and Portag3, KOHO is an ambitious company looking to make a difference in the financial lives of Canadians. KOHO has raised two rounds of funding and won the NASDAQ Award for Best FinTech Co. Visit www.koho.ca.
Tanya Black, Communications Strategist, [email protected] (416.666.5352)