Stock-Trading Startup Flink Raises US$12 MillionBy Andrea Villar | Fri, 02/05/2021 - 11:28
Flink raised US$12 million in a Series A investment round led by Accel and ALLVP, along with Clocktower, Kevin Efrusy and Oskar Hjertonsson. The stock trading platform will use these resources to improve its brokerage product launched in June last year, as well as its infrastructure and security. The company will also grow its team to further expand in the market. “It is truly inspiring to know that some of the brightest minds in finance and technology share our mission to democratize access to the securities market,” the platform wrote on a blog post. In 2019, the platform raised US$1 million in a seed round led by LATINIA, which makes its total funding US$13 million, so far.
Flink, launched in 2017 by Sergio Jiménez and Ricardo Rafael as a neobank, has established itself as one of the fastest-growing financial services in the fintech ecosystem. The Mexican platform seeks to make the financial system and the ability to invest and trade in the stock market available to a wider range of people and “not just a privileged sector.” In the past weeks, Flink reached more than 1 million users. “We are proud to have built a platform that empowers and engages people, as 90 percent of our Flinkers are investing for the first time,” the platform added.
In Mexico, Jiménez told Crunchbase, a person has to have at least MX$25,000 (US$1,230) to be able to buy shares, open an account and pay all the associated commissions. This is very difficult for most, he noted, as the average wage is 60 percent of that amount in the country. “The structure we have for investment was built for the wealthy. Mexico’s population is 120 million right now but there are fewer than 500,000 investment accounts in the whole country. Less than 1 percent of the population has access to this. It is a systemic problem in Mexico,” he added.
Accel Capital Fund, which already has several financial services companies in its portfolio, said in a blog post that over time it has seen innovative products across the entire spectrum of financial services, such as Flink, starting to emerge more rapidly outside the US. “When we first met Sergio, Ricardo, and the team at Flink, we knew that they were onto something really special. Since launching their consumer trading platform just a few months ago, Flink has rocketed to the top of the local App Store charts, crossing over 1 million users with nearly half a million active traders and almost all growth driven purely by word of mouth,” said Accel in a blog post.