KOHO, Canada’s leading financial technology company, today announced it has raised $130 million CAD, representing an important step towards the continued pursuit of its federal banking licence.
The round includes new investors whose backing reflects both institutional weight and operator credibility. Mubadala, the Abu Dhabi-based sovereign investor managing over $385 billion USD in assets, and Savano Capital, a Baltimore-based investment firm that targets investments in high-growth, expansion-stage businesses, join as new institutional partners. Tobi Lütke, founder and CEO of Shopify, and Michael Linford, COO of Affirm, who are among the most respected operator-investors in North American technology and fintech, also invested in the financing round.
Existing investors Portage Ventures, Drive Capital, BDC Capital, HOOPP, and Eldridge also participated in the round.
The funding brings KOHO to a $1.33 billion CAD valuation. This round provides the initial capital base for a federally regulated bank, a milestone that would allow KOHO to deepen and expand its mission to provide millions of Canadians with better financial solutions.
KOHO has been diligently working through the regulatory process to obtain a banking license. With this round closed, KOHO now has the capital base to make a substantive step toward securing a banking license in Canada, subject to ministerial approval.
“This raise reflects the conviction — from our team, our users, and now some of the world’s most credible investors — that Canada’s financial system needs to work better for more people,” said Daniel Eberhard, CEO and founder of KOHO. “We’ve spent years earning the trust of Canadians who deserve better from their financial institutions, and this investor group reflects a shared belief that we’re just getting started. We’ve focused on building the infrastructure, the regulatory relationships, and the trust with Canadians to do this right. The investor group we’ve assembled reflects a shared knowledge that the next great Canadian bank needs to be built differently, and that KOHO is the team to build it.”
The new capital will also support KOHO’s continued growth across its core product suite, including spending and savings accounts, credit-building tools, overdraft protection, and its recently launched crypto offering.
Since launching in 2014, KOHO has grown to serve more than 2.5 million Canadians and has raised $507 million CAD to date. Becoming a federally regulated bank would allow KOHO to go further for that customer — with lower costs, greater product flexibility, and stronger consumer protections for Canadians.
