Houston and Stockholm-based digital banking provider for immigrant communities in the US Majority raised $19m in seed funding.
The round was led by New York-based Valar Ventures, the venture capital firm founded by Peter Thiel, with participation from Avid Ventures, Heartcore Capital and a group of former startup founders.
Majority will use the cash injection to grow the business and expand to new migrant communities in the US, CEO Magnus Larsson said.
“We’ve just opened an office in Miami, and now we’re building up in Atlanta, Georgia and preparing for more cities,” Larsson said. “We’re also growing the team at all locations, especially our network of on-the-ground advisors who provide culturally relevant, in-person support to help potential members sign up.”
Founded in 2019, Majority is a digital bank focused on providing services to communities that have been traditionally overlooked by mainstream banks. The company began by offering financial services to the Nigerian community in Houston, later expanding to Cubans in Miami. The service is now available for residents in all US states with additional products for Mexicans, Cameroonians, Colombians, Ethiopians, Ghanaians and Kenyans.
For $5 per month, members in the US get access to an FDIC-insured account with early direct deposit and no overdraft fees, a Visa debit card with cashback and community discounts, no-fee remittances, at-cost international calling and the ability to send mobile credits.
The firm’s offerings are tailored for specific communities depending on location, with advisors from members’ home countries available for in-person advice and consultations. Members also receive community support through local meet-up spaces, migrant resources and events.
Larsson added, “Since we are a company of immigrants for immigrants, we also look forward to hiring diverse talent that exists within the different immigrant communities we serve. This is more important now than ever given that many have been hit hard by the pandemic.”
Other startups catering to marginalised communities include Daylight, an online banking provider focused on the LGBTQ community, First Boulevard and Greenwood, both focused on serving Black Americans and Cheese Financial aimed at the Asian community.
Copyright © 2021 FinTech Global
