Vexi, the Mexican neo bank raised an $8M round, led by Magma Partners. Previous investors Alpha4Ventures, Noa Capital, and Pomona Impact also participated in the round, along with new investors Redwood Ventures and U.S.-based Rebalance Capital.
These funds follow the US$24M round that included debt raised at the end of 2021.
Vexi will use the new funds to grow its customer base, onboard new talent to strengthen the team and enhance its proprietary tech stack and risk algorithms.
“Our vision is to use our technology, talent, passion, and experience to break the vicious circle where a person in Latin America cannot access the first line of credit to start their credit history and gets stuck taking out high-interest loans that they can never recover from,” said Gabriela Estrada, cofounder, and CEO of Vexi.
Vexi has been a pioneer by opening a market for this type of product, with over 1 million credit card applications, building a solid loan book, and Unit Economics. The company has also managed to combine low operating costs with an attractive value proposition for customers, which includes American Express brand credit cards, interest-free installments, cashback, purchase insurance, and affordable interest rates.
Vexi is transforming credit in Mexico by giving underbanked Mexicans access to credit along with education to help them build their credit history and improve their economic situation.