Fondeadora, a new challenger bank based in Mexico, has reportedly bagged $14m in its Series A to help with its goal of becoming a full-stack neobank.
The round was led by Google’s AI-focused investment firm Gradient Ventures, according to a report from TechCrunch.
Other participants include Y Combinator, Scott Belsky, Sound Ventures, Fintech Collective and Ignia.
Founded in 2018, the company has around 150,000 accounts active and seeing $20m in deposits each month, it claims.
With the fresh equity, the company is planning to enable users to earn interest on deposits, with an interest rate of around 5% or 6%. It is able to provide this as it will begin to invest into government bonds, the article said.
Fondeadora offers a mobile banking app and payment card that lets users transfer money, spend and make savings through their smartphone.
The Fintech was founded by Norman Müller and René Serrano, who had previously attempted to launch Fondeadora as a crowdfunding platform 10 years prior, the article said. However, the company did not to take off due to around 50% of card transactions failing in the system.
After this, the pair went back to the start and began a new FinTech.
Earlier in the year, Brazilian challenger bank giant NuBank entered the Mexican market to tap the unbanked population.
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