KOHO announced that it has secured $190M in additional capital, $40M of which is equity and $150M in debt.
The new capital injection will fund growth, the expansion of KOHO’s lending book and new products, and continued progress towards a Schedule 1 bank license.
The round was led by returning investor, PROPELR Growth, joined by new investor Rockefeller Capital and included existing investors Drive Capital, TTV, and BDC. The credit extension is in partnership with new and existing partners.
The recent funding round was led by notable investors, including fintech-focused venture capital firms and institutional investors. This substantial financial backing underscores the confidence that the investment community has in Koho’s business model and its vision for the future of banking in Canada. With these new resources, Koho plans to enhance its technology infrastructure, expand its product suite, and invest in customer acquisition strategies.
Koho’s ambition to secure a bank license is at the forefront of its strategic goals. By transitioning to a fully-fledged bank, Koho aims to offer a broader range of financial services, including savings accounts, loans, and possibly even mortgages. This move would enable the company to compete more directly with traditional banks and other fintech platforms, providing customers with an all-in-one solution for their financial needs.
Obtaining a bank license also means that Koho will be able to accept deposits from customers, which is a crucial step in establishing itself as a trusted financial institution. This capability will enhance customer confidence, as deposits would be insured by the Canada Deposit Insurance Corporation (CDIC), providing an additional layer of security for users.
The Canadian fintech sector is becoming increasingly competitive, with numerous startups and established players vying for market share. Koho’s focus on offering a user-friendly, app-based banking experience sets it apart from traditional banking institutions. The company emphasizes features such as no-fee banking, budgeting tools, and savings incentives, which resonate with a younger, tech-savvy audience.
As more consumers seek alternatives to traditional banking, Koho’s innovative approach positions it well to capture a growing segment of the market. The recent funding will allow the company to enhance its marketing efforts and further develop its product offerings to meet the evolving demands of consumers.
Koho’s mission extends beyond merely providing banking services; it aims to promote financial literacy and inclusion among Canadians. With its intuitive app and educational resources, the company empowers users to make informed financial decisions and manage their money effectively. The additional funding will enable Koho to amplify these initiatives, reaching a broader audience and helping more individuals gain access to essential financial services.
As Koho embarks on this exciting chapter with its newly secured funding and aspirations for a bank license, the company is poised to make a significant impact on the Canadian banking landscape. With a focus on innovation, customer experience, and financial inclusion, Koho is not just competing with traditional banks but is redefining what it means to be a bank in the digital age.
As the fintech sector continues to evolve, Koho’s strategic initiatives and commitment to enhancing financial services position it for a promising future. Stakeholders will be watching closely as the company works towards its goals, paving the way for a new era of banking in Canada.
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