LatamList – Stori, a Mexican neobank, raised a $32.5M Series B funding round led by Lightspeed Venture Partners. Existing investors Vision Plus Capital, BAI Capital, and Source Code Capital also contributed to the round.
Mexicans use cash for an estimated 86% of all transactions. Stori plans to change this with the launch of its new credit card that provides a 100% digital-based experience.
Stori launched its credit card product in January 2020 and has already had 1 million users apply for a card. The new funding round will help the startup on the way to “becoming Mexico’s leading credit card issuer for the rising middle class”.
“Consumers in Mexico increasingly use e-commerce and app-based services like ride-hailing and delivery, and credit cards are the preferred payment methods in those channels,” said Bin Chen, co-founder of Stori. “They’re experiencing more cash flow fluctuation and irregular expenses and need access to flexible credit that can meet short-term needs.”
The startup focuses particularly on the middle and low-income populations of Mexico. The new credit card will give new financial freedom to these previously underserved markets.
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