Toronto-based fintech Koho Financial Inc. has raised $42 million in Series B funds led by Portag3, the venture capital arm of Sagard Holdings.
The investment, which will be used to develop new products and services and accelerate growth, was assisted by Greyhound Capital and other strategic investors, according to a company release.
Koho, which launched less than two years ago based in Vancouver, has grown to more than 120,000 customer accounts and generates about $500 million in annualized transactions.
“Koho’s mission is to restore balance to Canadians by giving them control over their own finances,” Koho founder and CEO Daniel Eberhard said in the release. “This new funding is both validation of what we’ve done and a vote of confidence for the work left to do.”
The company previously raised $8 million from Portage3 in 2017.
In April, Koho announced a proprietary data tool, What the Fee, that scans bank accounts and tells consumers how much they are paying in fees per year. The tool uses technology from data company Flinks.
Koho is introducing premium account features later this month, which will include 2% cash back on groceries, restaurants and transportation; free financial coaching; price matching on purchases; high velocity limits on ATM transactions; and other perks.