The Healthcare of Ontario Pension Plan is investing in a Toronto-based fintech company offering an alternative to payday loans.
The HOOPP joined the Business Development Bank of Canada as a participant in a $210 million funding round for Koho Financial Inc. The funds raised will be used to expand Koho’s workforce from 250 to 400 employees, according to a press release, which noted it will also support the launch of new product categories.
Founded in 2014, Koho offers its 500,000 users access to banking services, including savings accounts, through a mobile app and prepaid Visa cards. It recently launched a new program to offer workers an alternative to short-term loans, with employers serving as guarantors.
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In other news, the Caisse de dépôt et placement du Québec is reinvesting $20 million in a reconditioned sports equipment retailer.
Laps, a Quebec-based business that resells golf and bicycling equipment in North America and Europe, received its first investment from the Caisse in 2019. It intends to use the funds to pursue a growth strategy that involves using artificial intelligence software to optimize its digital sales platform, according to a press release.
“From the time of our initial investment in 2019, we’ve been impressed by Laps’ innovative and distinctive business model, based on the circular economy and helping to minimize the consumption carbon footprint,” said Kim Thomassin, executive vice-president and head of investments in Quebec and stewardship investing at the Caisse, in the release.
“We’re pleased to strengthen our partnership within Laps alongside a dynamic and experienced team to provide the company with the means to achieve its ambitions.”
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