KOHO secures $130M to push for Canadian banking licence

KOHO, Canada’s leading financial technology company, has raised $130 million CAD in a new funding round. The investment pushes the firm’s valuation to $1.33 billion CAD and brings in major new backers. The funding round included new institutional partners Mubadala and Savano Capital. Existing investors Portage Ventures, Drive Capital, BDC Capital, HOOPP, and Eldridge also participated. High-profile individuals like Tobi Lütke, founder and CEO of Shopify, and Michael Linford, COO of Affirm, joined as well.

KOHO plans to use the capital to secure a federal banking licence in Canada. The company has been navigating the regulatory process for this licence, which would allow it to offer lower costs, greater product flexibility, and stronger consumer protections. Since its launch in 2014, KOHO has served over 2.5 million Canadians. The new funds will support growth across KOHO’s core product suite. Obtaining a banking licence remains a key priority for the company. This move could significantly expand its ability to serve customers nationwide.