Toronto’s Kobo raises $50 million to compete against iBooks and Amazon

Toronto-based e-reading startup Kobo yesterday closed a $50 Million investment round led by an undisclosed institutional investor, with existing investors also throwing $13 million into the pool.

“Kobo will use the new funding to continue its explosive growth internationally,” said Greg Twinney, CFO of Kobo. “As the eReading space continues to heat up, Kobo is committed to providing an innovative experience that lets consumers read anytime, anyplace and share their love of reading with friends.”

Kobo is rapidly growing, having added one million users in the past three months, and uses an open, cloud-based platform, making its books readable from other devices, such as tablets and smartphones (even Apple’s).

The company is shifting focus to a European expansion. It’s opening stores in Germany and Spain in May, followed by France, Italy, and the Netherlands later this summer.