Loading organizations...
§ Private Profile · Toronto, ON, Canada
Canadian fintech company offering mobile-first no-fee banking, reloadable Visa, and savings tools for Canadians, focused on personal finance.
KOHO has raised $945.7M across 16 funding rounds.
Key people at KOHO.
KOHO has raised $945.7M in total across 16 funding rounds.
KOHO, a Canadian fintech company based in Toronto, Ontario, offers a mobile-first alternative to traditional banking, providing a reloadable Visa card, no-fee banking, and automated savings tools. The company has grown to serve over 1 million users and employs approximately 250-350 individuals, achieving a $100M run rate by the end of 2023. KOHO's business model relies on merchant interchange fees, allowing it to offer fee-free financial products to Canadians, particularly millennials. The organization, led by co-founder and CEO Daniel Eberhard, recently surpassed 1 million customers and has been accepted into Phase II of becoming a bank in Canada. Founded in 2014 by Daniel Eberhard and Mike Benna, KOHO continues to expand its financial services. Its business model centers on profits from merchant interchange fees that users generate with the Visa card, rather than charging individuals banking fees.
Key people at KOHO.
KOHO has raised $945.7M across 16 funding rounds. Most recently, it raised $140.8M Debt / Other Equity in October 2024.
KOHO is a Toronto-based fintech company founded in 2014 that provides a mobile-first neobank platform offering no-fee spending accounts, prepaid Mastercard cards, high-interest savings, cash back rewards, credit building tools, and overdraft protection.[1][4][5][6] It targets everyday Canadians, particularly millennials and younger users frustrated with traditional bank fees, serving over 1.5 million users with a 2023 run rate of $100 million and a team of around 250.[4][7] KOHO solves core personal finance pain points like high fees, limited access to quality tools, and poor digital experiences by delivering intuitive app-based services including instant e-transfers, bill pay, budgeting, and free credit score monitoring, all powered by partnerships with Mastercard and investors like Drive Capital and Portag3.[5][6]
The platform emphasizes financial empowerment through tiered plans (Essential, Extra, Everything) with escalating benefits like up to 3.5% interest, 2% cash back on groceries and transit, and no foreign transaction fees, positioning it as a smart alternative to big banks.[1][7]
KOHO was founded in December 2014 by Daniel Eberhard in Toronto after he identified steep fees from major Canadian banks and the fact that two-thirds of Canadians couldn't meet minimums to avoid charges.[4][5] Eberhard, previously CEO of Kineticor (sold to Algonquin Power & Utilities), spent years angel investing and mentoring before ideating KOHO to deliver simpler, fee-free banking.[4][5] Early traction came via a white-label deal with Peoples Trust Company and Visa (later Mastercard), enabling quick rollout of smart spending accounts and mobile apps; users could sign up in under three minutes, driving viral growth through referral codes offering financial incentives.[5][6]
Pivotal moments include reaching 1 million users by end-2023, becoming Canada's highest-rated finance app, and Daniel Eberhard's 2024 selection as an Endeavor Entrepreneur.[4]
KOHO rides the neobank wave disrupting Canada's oligopolistic banking sector dominated by the "Big Five," capitalizing on demand for digital-first, fee-free alternatives amid rising living costs and low financial literacy.[1][5][8] Timing aligns with fintech maturation—post-2014 launch amid mobile banking adoption—and regulatory shifts like Bank of Canada registration, enabling direct money management without full banking charter.[9]
Market forces favoring KOHO include Canada's underbanked population (e.g., millennials facing high fees), explosive fintech growth (peers like Wealthsimple, Neo Financial), and investor confidence from raises backing expansion.[1][4][6] It influences the ecosystem by normalizing accessible tools, pressuring incumbents on fees/rewards, and fostering competition that boosts overall financial inclusion.[4][5]
KOHO's trajectory points to scaled profitability and potential international expansion beyond Canada, building on 1.5M+ users, $100M run rate, and PSP status for seamless payments.[4][7][9] Trends like embedded finance, AI personalization, and open banking will amplify its tools, while economic pressures sustain no-fee appeal. Influence may evolve via acquisitions, B2B extensions, or challenging banks directly—cementing its role as a financial empowerment leader for everyday Canadians, true to its mission of intuitive, catch-free solutions.[6]
KOHO has raised $945.7M in total across 16 funding rounds.
KOHO's investors include PROPELR Growth, Afore Capital, Balderton Capital, BDC Venture Capital, Better Tomorrow Ventures, Blank Ventures, Ali Tamaseb, Drive Capital, F-Prime Capital Partners, Golden Ventures, Gradient Ventures, iNovia Capital.
