Vancouver-born KOHO Financial announced today that it successfully raised an additional $86 million in a series D extension at an $800 million valuation and has surpassed one million users.
Despite a decline in Canadian fintech investment during the first half of 2023 that saw valuations slide to levels not seen since the beginning of pandemic, KOHO has sustained a flat valuation from its 2021 funding round.
KOHO set out to disrupt Canada’s Big Five Banks in 2014.
While KOHO experienced hiccups earlier this year, the fintech’s continued success can be attributed to the growth of its innovative product range which includes Credit Building, Cover, the ability to check your credit score for free, and an industry-leading 5 percent savings rate.
“We set out to raise this additional capital with one thing in mind: to accelerate building value for users,” Daniel Eberhard, CEO and founder of KOHO, told Fintech.ca.
“In this economic climate, every dollar counts. This injection puts us in a position to ship faster and push harder for Canadians.”
Drive Capital’s Chris Olsen says that more and more consumers are choosing newer, mobile-first tech startups that simplify their financial lives and “KOHO is emerging as the winner in Canada” amongst challenger banks.
According to Eberhard, today’s series D extension makes KOHO default alive, meaning they will make a profit with the assets that they currently have access to without any further investment or future changes.
Looking ahead to 2024, KOHO will continue to innovate with features such as increased credit offerings, in-app bill splitting, and access to government benefits. KOHO’s feature roadmap is public and open for comments online.
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