Canadian fintech startup KOHO has managed to raise $25 million in its latest funding round. The funding round was led by Drive Capital and NAventures, the venture capital arm of the National Bank of Canada, also participated. The funding round comes six months after the company had announced its Series B round.
Fintech company’s claim to fame lies in its no fees smart spending account that allows all Canadians to spend smartly and make more savings. KOHO aims to give more people access to the financial system and is trying to make it as transparent as possible. The fresh capital is likely going to be used to improve the product further as the company picks up more customers.
KOHO’s CEO & founder, Daniel Eberhard, spoke about the latest development. He said,
“We’re 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.”
Over the past 2.5 years, KOHO has grown at an impressive pace. The company added its 175,000th user recently and also launched a premium version of the offerings. It should also be noted that KOHO is a highly rated app and has 4.8 out of 5 stars rating in the App Store.
Chris Olsen, Partner at Drive Capital, stated that at this point, customers are increasingly more attracted to mobile-first services that can improve their lives significantly. That proved to be the motivation behind Drive Capital’s decision to lead the latest funding round in KOHO.