KOHO bags $25m just months after closing Series B

KOHO, an alternative banking account, has secured $25m in funding round led by Drive Capital.

Other contributions came from National Bank of Canada’s investment division NAventures.

With the capital, KOHO is looking to scale its platform and build additional financial products.

The investment comes just months after the FinTech closed its Series B round which was led by Portag3 Ventures and supported by Greyhound Capital. How much capital the company raised in this series round was not disclosed.

Since the company began operations two and a half-years ago, it has added 175,000 users to its services and has a waitlist of 40,000.

Canada-based KOHO is a mobile banking app which also gives users a Visa debit card and real-time insights on their money. The mobile app aims to provide consumers with better control of their money, making it easier to track spending, make automatic savings and access financial education.

Instant savings can be made through KOHO by rounding up transactions to the nearest $1, $2, $5 and $10 and saving the excess money.

Drive Capital partner Chris Olsen said, “When we look across the global FinTech landscape, it is clear that consumers are increasingly choosing newer, mobile-first technology startups that simplify peoples’ financial lives. KOHO is a wonderful example of this.”

Earlier in the month, National Bank of Canada launched its Innovation Competition which aims to see Canadian FinTechs, students and other team collaborate to build new solutions that help consumers better manage their money.

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