Toronto-based fintech, KOHO Financial Inc., announced it raised $210 million in Series D funding yesterday, led by Eldridge and also existing investments from Drive Capital and TTV Capital, while additional investments were made by HOOPP, Round13, and BDC.
KOHO offers a free spending and savings account, managed by a mobile app and prepaid Visa card. The account targets millennials seeking to open up accounts that do not incur fees like traditional chequing accounts. The KOHO app also supports Apple Pay and contactless payments.
“I think our growth is evidence that Canadians are looking for something different,” said Daniel Eberhard, CEO and Founder of KOHO, in a statement. “It takes a combination of exceptional team members, investors and partners to see KOHO’s mission through and we’re fortunate to have all three.”
KOHO says it will use the new capital to “accelerate growth, expand into new product verticals, and increase the company’s headcount from 250 to 400.”
“We’re passionate about our mission and that has resonated with Canadians. Democratizing access to wealth creation means giving people financial security to spend more time with family, own a home, or save for tuition for their grandkids. That’s a wonderful thing to be a part of,” said Todd Boehly, Chairman and CEO of Eldridge in a statement.
According to KOHO, its user base surpassed 500,000 after completing its Series C extension financing round last year.
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