Group of Investors pour US$250 million into Mexico's Fintech ClipBy María Fernanda Barría | Wed, 06/30/2021 - 10:01
Mexico's fintech startup Clip has received US$250 million from SoftBank and Viking Global Investors LP. aiming to boost operations, hire approximately 320 people and attract the best talent possible, said Adolfo Babatz, Clip's co-founder and CEO, in an exclusive interview with Bloomberg.
Clip had previously received an additional US$100 million from several prestigious investors such as: Softbank, Grupo Financiero Banorte SAB de CV, Goldman Sachs Group Inc, General Atlantic LLC, Ribbit Capital, Alta Ventures, Dalus Capital and American Express Ventures.
Mexico has become an excellent hub for technology as previously reported by MBN during the second day of Mexico Business Forum 2021 Virtual Edition and the panelist agreed that the region experiences an important advance in operations led by years of challenges and development. Vincent Speranza, Managing Director and Latam Regional Adviser at Endeavor Mexico, indicated that one of the first milestones of the region's ecosystem was the first round of capital that exceeded US$100 million, made by Clip in 2019 and led by Softbank.
Clip has stimulated the trend with payment terminals providing access to companies that want to accept on-site debit or credit card payments. The startup offers three products, Clip Plus, Clip Pro and Clip Total. According to the company's website, the classic model allows connecting the payment terminal to a smartphone. One of the benefits is the installation, which is faster than traditional terminals, with no waiting time for proper activation. The startup has taken advantage of a gap in the market to offer better solutions and continue with financial inclusion. Babatz said MBN, "In Mexico, there are 140 million debit cards and 30 million credit cards. However, there are not enough places to use them and that is why people need to withdraw money from ATMs. For this reason, it can be said that Clip is the missing piece in financial inclusion. Clip is revolutionizing "payment terminals" in the country."
The startup has taken a step further into creating a product that does not require a smartphone, which is the case with Clip Pro and Clip Total. The company explains that Clip Pro and Clip Total are portable terminals that do not need to be connected to smartphones or tablets to accept card payments. It works with mobile data (included) or a wifi connection. This allows companies to have greater control of mobile payments such as home payments, payments with distributors and suppliers, at events, in restaurants, among others.
The company highlights that one of the critical points of clip distribution is its efficient sales and distribution strategy through 16,000 sales points in chains such as Oxxo, Walmart and Sanborns. In parallel, they have created a network of commission agents that operate as freelancers, combined with sales through their website.