Vancouver-founded fintech Koho raises $42m

Koho CEO Daniel Eberhard | Rob Kruyt, BIV file photo

What happened: Financial technology company Koho raises $42 million in capital

Why it matters: The company, which maintains an office in Vancouver, will be using the capital to accelerate growth and build new products

A Canadian financial technology company that traces its roots to Vancouver is sitting on a whole lot more capital.

Koho Financial Inc. announced Wednesday (May 15) it’s raised $42 million in a Series B funding round led by Portag3 Ventures.

Greyhound Capital and “other strategic investors” also participated in the round, according to the company.

Koho has developed a platform to offer alternative banking options to Canadians.

It was founded in Vancouver in 2014 but moved its head office to Toronto in the fall of 2017.

Koho still maintains a small office in Vancouver with five workers, while 65 workers are based in Toronto.

Workers in the Vancouver office range from developer to customer service.

“Koho’s mission is to restore balance to Canadians by giving them control over their own finances. This new funding is both validation of what we’ve done and a vote of confidence for the work left to do,” Koho CEO and founder Daniel Eberhard said in a statement.

The company said the $42 million in new capital will be used to accelerate growth, and build new products and services.