Toronto fintech Koho has raised $130 million at a $1.33-billion valuation, from investors including Abu Dhabi sovereign wealth fund Mubadala.

The deal: Baltimore-based Savano Capital, Shopify CEO Tobi Lütke and Affirm chief operating officer Michael Linford also participated in the round, alongside existing investors Portage Ventures, Drive Capital, Business Development Bank of Canada, Healthcare of Ontario Pension Plan, and Eldridge. Koho, which offers bank-account-like products as well as crypto trading, credit-building tools and international money transfers, was last valued at $800 million in 2024, about flat from its 2021 valuation. In an interview, CEO Daniel Eberhard said the funding will satisfy regulators’ capital requirements as Koho seeks a banking licence. Having a major global investor like Mubadala also lends Koho credibility and expertise, he said. “They’re certainly one of the best tech investors in the world.” 

Mubadala joins the cap table: Mubadala is a global investment heavyweight, with US$385 billion in assets under management in multiple sectors around the world. In 2025, the sovereign wealth fund took Canadian wealth management firm CI Financial private in a $12.1-billion transaction. The Koho funding means Mubadala now has investments in Canadian financial services targeting both traditional investors and digitally native ones.

Eberhard said there hasn’t been much talk of how to bring Koho and CI products together, however—“we spent less than two minutes on it,” he said. Canadian regulators are tightening oversight of foreign ownership of fintechs and academics have flagged the risk of Gulf Region governments accessing sensitive technology and infrastructure through the investments made through their sovereign wealth funds, but Eberhard said regulators haven’t raised concerns.

Getting bigger: Eberhard said Koho has been growing quickly, pulling in revenue in the “mid-two hundred [millions]” with a staff of 250. In addition to forming a capital base for Koho’s forthcoming bank, he said the company plans to use the new funding to grow. “We’re never going to outspend the banks. The only way we win is if our product is structurally and meaningfully better,” he said. In addition to the banks, Koho also competes against the likes of Neo Financial, EQ Bank and Wealthsimple. 

What’s next: Eberhard said Koho is “getting very close” to obtaining a banking licence, a milestone it’s been working on since 2021. Questrade, a fintech that focuses on investing, secured its own banking licence last November, six years after applying. Eberhard said Koho  is currently focused on growing the business over profitability: “We could be profitable tomorrow if we wanted to.” He said he’s “not super focused” on eventually selling Koho or taking it public, saying secondary sales of shares have provided liquidity for staff and early shareholders. “We think if we do our job well, we can build the next great bank in this country. We think that’s a $30 to $50 billion outcome,” he said.