KOHO, a leading Canadian Challenger Bank, announced today that it has secured $190 million in additional funding, consisting of $40 million in equity and $150 million in debt.
This new capital will support KOHO’s growth, expand its lending book, fund innovative products, and aid progress towards achieving a Schedule 1 bank license.
The round was led by returning investor PROPELR Growth, with new investor Rockefeller Capital and participation from existing investors Drive Capital, TTV, and BDC. The credit facility was arranged in collaboration with both new and existing partners.
“We’re more excited than ever at KOHO,” said CEO Daniel Eberhard. “This capital allows us to grow faster and expand our lending business, supporting our bank license application. We’re committed to building and scaling wonderful products like rent reporting, tenant insurance, and buy-now-pay-later, while maintaining our users’ trust.”
KOHO has also announced a loaded schedule of new product launches in the near future.
PROPELR Growth Fund, an investor since early 2022, expressed confidence in KOHO’s leadership and growth potential. “We’ve been very impressed with KOHO’s ability to innovate and help Canadians save money and improve their financial security,” said Sanjiv Samant, Managing Partner of PROPELR Growth.
“We’re delighted to significantly increase our investment to accelerate KOHO’s next phase of growth as a Canadian fintech leader.” Samant will join KOHO’s Board of Directors as part of this financing.