The Toronto-based fintech company offers an app-focused no-fee savings account and pre-paid Visa card, as well as options for customers to receive some work pay ahead of schedule and a feature to build their credit score.
The company’s Instant Pay feature, framed as an alternative to payday loans, allows employees to receive up to 50 per cent of their daily earned wages at the end of the day if the employer has also signed up to the program. It says companies like Tim Hortons and Walmart are on board.
Koho, which says it has over 500,000 users, says it plans to use the money to expand growth, add new product categories, and increase head count to 400 from 250.
The company says the latest investment round was led by Eldridge, a Connecticut-based holding company, along with renewed commitments from existing investors Drive Capital and TTV Capital. It says Healthcare of Ontario Pension Plan, The Business Development Bank of Canada, and Round13 also made investments.
Eldridge chief executive Todd Boehly said in a statement that he has seen similar business models work well around the world and that Koho is a leader in the space in Canada.
Source : The Canadian Press