Koho Financial has raised $130 million in a Series E round, valuing the Canadian challenger bank at $1.33 billion and making it the country's latest unicorn. The all-equity financing will provide the capital base required for Koho to become a federally regulated bank. The round was backed by new investors including Abu Dhabi's Mubadala, Savano Capital, Shopify CEO Tobi Lütke and Affirm COO Michael Linford, alongside existing investors Portage, BDC Capital and Drive Capital. The company has now raised $507 million in total funding. Founded in 2014, Koho has surpassed 2.5 million users and generates approximately $250 million in annual revenue, growing 50 per cent year-over-year. The company is navigating the final stages of obtaining a Schedule 1 banking licence, a process it began five years ago.

KOHO has launched KOHO Crypto, a new offering allowing its 2.5 million Canadian users to buy, hold and manage cryptocurrency directly within the KOHO app. Powered by regulated exchange Ndax, the service features some of Canada's lowest trading fees, starting at 0.5% per trade for KOHO Everything plan members. Users can access over 20 cryptocurrencies including Bitcoin, Ethereum and Solana, with purchases funded instantly from their KOHO balance. The platform requires no foreign exchange fees, offers instant settlement and allows trading from as little as $1. Assets are held with qualified custodians through Ndax's regulated infrastructure. KOHO CEO Daniel Eberhard said the launch addresses barriers around complexity and cost that have prevented average Canadians from accessing crypto. Additional features include price alerts, recurring purchases and in-app education tools.