Koho, the Canada-based developer of a digital financial services platform, has secured C$25m ($18.8m) in a funding round that included National Bank of Canada’s strategic investment vehicle, NAventures.
Venture capital firm Drive Capital led the round, which followed a $32.1m series B round in May this year that was led by Portag3 Ventures, an investment firm formed by conglomerate Power Corporation, and backed by investors including Greyhound Capital.
Founded in 2014, Koho offers a finance account through a mobile app that enables users to spend money and access a reloadable debit card without paying extra fees. The service has more than 175,000 users and the company claims it has a 40,000-strong waiting list for its cards.
Daniel Eberhard, Koho’s founder and chief executive, said: “We are really looking forward to bringing both Drive and National Bank on board. We had more interest in the round than we chose to take and decided to focus on partners who bring strategic value.
“Our team is world-class and the combination of Drive, National Bank and Portag3 means we have everything we need to restore balance to Canadians. We could not be more excited for the next stage of Koho’s journey.”
The company had raised at least $11m prior to its series B round, $8m being provided by Portag3 in 2017. Its early investors include Ferst Capital, Hedgewood, Highline and Stanley Park Ventures.
