Koho Raises $130M, Moves Closer to Banking Licence

Canadian fintech company Koho has raised $130 million in a new funding round, moving it closer to securing a federal banking licence. The funding comes as the Office of the Superintendent of Financial Institutions (OSFI) works to streamline the licensing process for fintech firms.

Funding Details

Koho raised $130 million in a funding round led by institutional investors. The company's valuation was not disclosed. The capital will help Koho meet regulatory requirements for a federal banking licence.

Regulatory Shift

OSFI has stated it is working to make the path to a federal banking licence 'quicker, clearer and more predictable,' opening the door for fintech companies like Koho to enter traditional banking.

Context

Founded in 2014, Koho offers digital banking services including chequing accounts and credit cards. Obtaining a banking licence would allow it to offer additional services such as loans and insured deposits.

What This Means for Investors

This development brings Koho closer to becoming a full-service digital bank in Canada, potentially increasing its competitive edge and investment appeal. However, the licence is still subject to regulatory approval.