Flink, a Mexico City-based neobroker, has raised $57m in a Series B round of funding led by Lightspeed Venture Partners.
The financing comes just over six months after Flink raised $12m in a Series A round led by Accel. Existing backers Accel, ALLVP, Clocktower and new investor Mantis Venture Capital (founded by The Chainsmokers) also put money in the Series B. Since its 2017 inception, the startup has raised nearly $70m.
The startup plans to use its new capital to keep growing its team, toward product development and to expand its service to different countries in Latin America.
Flink launched its app in 2018 with a wallet service, a digital and physical global debit card backed by Mastercard and, last year, it began offering the ability to buy and sell fractional shares from 30 pesos, without commissions, for NYSE-listed stocks.
The demand for what the startup has to offer is clearly there. Since launching its first brokerage product in July of 2020, Flink has 1.6 million users, up from 1 million users at the time of its February raise. Over 85% of its users are first-time investors. GenZers seem to be the most interested in investing — 27% of the app’s clients are between 18 and 25 years old, while 22% are millennials, execs say.
The company is growing its user base by 38% per month and revenue by 31% per month and touts a user acquisition cost of 62 cents. It is currently the largest retail brokerage service in Mexico, he said. Flink has 110 employees, up from 25 people a year ago today.
The firm’s founders said, “Although, the outlook we envisioned was quite positive, as we decided to create different solutions for hundreds of clients. The pandemic arrived and everything stopped abruptly, except the enthusiasm of the entire team that made up Flink, so much so, that now, a team of 110 people, we continue working to achieve that much desired change that would revolutionize the financial and stock market in Mexico.
This is how in June 2020 we launched the first and only trading service in the country that gave the possibility of making accessible investments for millions of people.”
There is a growing number of neobrokers globally, including Scalable Capital, Bitpanda and Trade Republic in Europe.
