📝 Koho raises $93M

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Canadian fintech challenger Koho Financial has officially secured $93 million in an all-equity Series E financing round, vaulting the nearly 12-year-old neobank to a $1 post-money valuation and granting it coveted unicorn status. This significant capital injection, which brings Koho's total funding to date to $362 million, serves as the critical regulatory capital base required to advance the platform into the final stages of acquiring a coveted Schedule 1 federal banking licence from the Office of the Superintendent of Financial Institutions (OSFI). The funding round drew heavy global backing, adding the Abu Dhabi sovereign wealth fund Mubadala, Savano Capital, Shopify CEO Tobi Lütke, and Affirm COO Michael Linford to the cap table alongside existing heavyweights like Portage Ventures and BDC Capital. Operating out of Vancouver and Toronto with a 250-person workforce, Koho is currently generating approximately $250 million CAD in annual revenue at a 50 percent year-over-year growth clip, serving over 2.5 million users who leverage its tiered subscription app for integrated features like credit building, interest-bearing accounts, international money transfers, and crypto trading. By securing this regulatory transition, CEO Daniel Eberhard aims to bypass the company's reliance on third-party banking partnerships, allowing Koho to innovate at an infrastructure level, drive down its cost of capital, and introduce direct deposit and loan products to inject true competition into Canada's highly consolidated, Big Six-dominated banking sector.

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