Canadian fintech Koho has raised C$210 million in funding and set out plans to let customers get early access to a portion of their paycheques.
The funding round was led by Eldridge and joined by TTV Capital, Drive Capital and Portage Ventures, according to the Globe and Mail.
Billed as an alternative to a traditional banking experience, Koho users are furnished with a reloadable Visa card and a mobile app which offers a savings account, real-time insights into money management, instant cashback and round-ups.
The firm, which has around 500,000 customers, is now moving into lending, partnering payroll provider Automatic Data Processing to enable Canadians to get free access to up to 50% of their paycheque early.
Daniel Eberhard, CEO, Koho, tells the Globe and Mail: “About half of Canadians are living paycheque to paycheque, waiting two weeks to get paid. We want to be able to help individuals access the money they have already created and not have to turn to payday lending or take on excessive debt.”
The new funding will also be used for marketing and to increase Koho's headcount from about 250 to 400, with a particular focus on the engineering team.