Credit platform Koto said to raise £1.3m in its funding round

Koto has launched its services after reportedly closing a £1.3m funding round, as it looks to reach 50,000 users in the UK.

The company will also use the capital to further train its AI-powered credit risk systems, expand its operational capacity, enhance its marketing efforts and hire more staff, according to an article from UKTN.

Koto aims to help the 12 million people in the UK that are excluded by mainstream lenders. Its mobile app offers two types of credit to users. The first is a traditional credit card, which allows users to borrow a set amount.

The other credit option is a buy now, pay later scheme, which lets users buy something and decide how much and how frequently they make payments.

Other tools available on the app include spend tracking and mobile payments.

Earlier in the week, fellow credit platform LimePay reportedly closed a $21m pre-IPO funding round. The Australian FinTech offers buy now, pay later schemes.

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