LatamList – Albo raised a $45M funding round to consolidate its position as the leading neobank in Mexico. Participating investors included Valar Ventures, Greyhound Capital, Mountain Nazca, and Flourish Ventures.
The fintech currently has more than half a million customers across Mexico and a network of 30,000 retail locations for deposits. Albo recently received its license to operate as a full depository bank in the country, and now aims to become the leading financial services provider in Mexico.
Unlike many neobanks in the region, Albo focuses on the traditionally underbanked Mexicans from middle and low-income families. Albo is seeking to help these customers move from a cash-based world to a digital one where they can easily manage their finances online.
“We are targeting the underbanked population who don’t have access to all the financial products in the market. […] Where 90% of transactions are cash-based, you need a value proposition that fits very well on that cash-based society,” said Angel Sahagún, founder and CEO of Albo.
The funding comes at a time when the race to become Mexico’s leading neobank is closing in following Fondeadora’s recent acquisition of Mibo. Albo will use the funding to expand into the lending and insurance markets with new products and continue to build its platform.
“Albo has proven its ability to drive sustainable growth and is leading the market. This is a team that is going to transform banking in the region,” said James Fitzgerald, founding partner at Valar Ventures.
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