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News Article

Mexican Challenger Bank Klar Raises US$15 Million in Funding

By Andrea Villar | Wed, 10/21/2020 - 08:00

Klar, a new challenger based in Mexico City, closed US$15 million in Series A funding led by Prosus Ventures, the company announced in a statement. The funds will be put to use to grow Klar’s engineering capabilities in both its Berlin and Mexico hubs to expand the company’s product suite. 

In Mexico, according to Statista, only 10 percent of the country's adults have credit cards. "Aging, archaic architecture has made it difficult for traditional banks to serve the needs of the growing middle class in Mexico," Klar’s statement said. “We have built a new banking infrastructure core that aligns with the financial needs of consumers and allows us to serve a massive segment of the population in Mexico that has previously been left behind when it comes to financial services,” added Stefan Moller, Klar’s Co-founder and CEO.

This round, organized alongside the International Finance Corporation (IFC), a member of the World Bank Group, brings Klar’s total debt and equity funds to approximately US$72 million since the startup was founded in 2019. According to Finnovista, up to 60 percent of Mexican fintech-related startups have already received some form of funding. To date, Klar has issued over 25,000 credit lines to its 200,000 customers in less than 12 months since its inception. 

“Klar is making credit accessible to all Mexicans, including those with no credit history,” explains Daniel Autrique, Klar’s Co-Founder and CFO. “We help people build credit by looking at how and where they spend their money, instead of being stuck with traditional credit scores that are backward-looking and obsolete.”

 

Andrea Villar Andrea Villar Journalist and Industry Analyst