KOHO, the Canadian FinTech, announced on Wednesday (May 15) that is has closed a $42 million round of fundraising. In a press release, KOHO said the round was led by Portag3 Ventures and included participation from Greyhound Capital and other strategic investors.
KOHO, which provides Canadians with an alternative to traditional banking, has been undergoing fast growth. In less than two years, it has grown to more than 120,000 accounts. KOHO has more than $500 million in annualized transactions, with the KOHO card being used every four seconds. The startup has moved its headquarters to Toronto and has updated its app 43 times.
Canadians gave its current account a net promoter score of 80, which means they are willing to refer the product to others. It also has an App Store rating of 4.8 out of 5 stars, the FinTech said in the press release.
“KOHO’s mission is to restore balance to Canadians by giving them control over their own finances. This new funding is both validation of what we’ve done and a vote of confidence for the work left to do,” said Daniel Eberhard, founder and CEO of KOHO, in the press release.
KOHO plans to use the proceeds from the round of funding to accelerate its growth and build new products and services. The startup had raised $8 million in funding from Portag3 during its Series A round.
“The Canadian market is ripe for an alternative banking solution, and we believe KOHO’s recent customer adoption is validation for this thesis. Portag3 is in a unique position to further accelerate this growth through our LPs and growing the Canadian FinTech ecosystem,” said Adam Felesky, CEO of Portag3 Ventures, in the same press release.
KOHO is among the FinTechs that are trying to turn the traditional banking industry on its head. Sensing that consumers are fed up with high fees, low interest rates and a lack of services, the FinTechs have been entering markets around the world. Many are seeing fast growth and forcing traditional players to respond.