The C$130 million round, backed by Mubadala and Shopify’s Tobi Lütke, values the challenger at C$1.33 billion as it seeks ministerial approval for a federal banking license
Canadian fintech Koho has raised C$130 million at a C$1.33 billion valuation, in a round joined by Abu Dhabi sovereign investor Mubadala, Savano Capital, Shopify founder Tobi Lütke, and Affirm COO Michael Linford, alongside existing backers Portage Ventures, Drive Capital, BDC Capital, HOOPP and Eldridge.
Founded twelve years ago as a digital challenger to Canada’s big five banks, Koho now serves more than 2.5 million users through its spending and savings account app. The company recently became a Payments Canada member and has been working toward securing a federal banking license, a process that requires ministerial approval. Koho says the new funding gives it the capital base needed to take a substantive step toward that goal.
The funds will also support growth across Koho’s product suite, including spending and savings accounts, credit-building tools, overdraft protection and its recently launched crypto offering.
“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,” said Daniel Eberhard, CEO of Koho. “We’ve focused on building the infrastructure, the regulatory relationships, and the trust with Canadians to do this right.”