Fintech firm Koho Financial raises $210 million to develop alternative banking
TORONTO – Koho Financial Inc. announced it has raised $210 million in a Series D round of funding as it seeks to expand its workforce and accelerate growth.
The Toronto-based fintech company offers an app-focused no-fee savings account and a prepaid Visa card, plus options for customers to receive an earlier-than-expected working pay and a feature to set their score credit.
The company’s Instant Pay feature, designed as an alternative to payday loans, allows employees to receive up to 50% of their daily salary at the end of the day if the employer has also signed up for the program. He says companies like Tim Hortons and Walmart are on board.
Koho, which says it has more than 500,000 users, says it plans to use the money to expand growth, add new product categories and increase the number of people from 250 to 400.
The company says the latest investment round was led by Eldridge, a Connecticut-based holding company, along with renewed commitments from existing investors Drive Capital and TTV Capital. He says the Healthcare of Ontario Pension Plan, the Business Development Bank of Canada and Round13 have also made investments.
Eldridge CEO Todd Boehly said in a statement that he has seen similar business models work well around the world and that Koho is a leader in the field in Canada.
This report from The Canadian Press was first published on February 1, 2022.
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