The financing comprises USD 150 million in primary capital, USD 10 million in secondary for early shareholders and members of the Koho team, and a USD 50 million debt facility. The round was led by US-based holding company Eldridge.
The company says it will use the funding to staff up, increase its marketing spend, and expand into new product verticals. From the beginning, Koho’s goal has been to offer banking alternatives to Canadians, but it has been a long road to achieve core feature parity with traditional financial institutions, according to betakit.com. That changed last year with the launch of its Credit Building feature, where the startup issues customers a line of credit for a USD 7 monthly subscription fee to help them build their credit scores.
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