Fintech firm Kapital is Mexico’s latest unicorn, valued at over US $1B after acquiring Intercam Bank

Mexican neobank Kapital Grupo Financiero achieved “unicorn” presumption connected Tuesday aft raising US $100 cardinal successful a Series C backing round, doubling its valuation to US $1.3 billion. The milestone comes soon aft the slope acquired Intercam Bank, the people of caller U.S. sanctions for allegedly laundering wealth for cartels.

Kapital joins a fistful of Mexican companies that person reached the coveted unicorn status, including used-car seller Kavak, crypto speech Bitso and fintechs Stori and Plata.

Intercam was 1 of respective Mexican banks sanctioned by the U.S. earlier this twelvemonth for alleged engagement with organized crime. Kapital, locked into enlargement mode, acquired its assets precocious to assistance enactment it implicit the US $1 cardinal people to suffice arsenic a unicorn. (Intercam/Facebook)

“We are arrogant to articulation the tiny radical of unicorns successful Latin America,” said René Saul, CEO and co-founder of Kapital Grupo Financiero. “Kapital … reached profitability successful little than 2 years, and our maturation continues to accelerate acknowledgment to the operation of a banking licence and proprietary software.” 

“Unicorn” status — achieved erstwhile the valuation of a privately held start-up exceeds $1 cardinal — indicates exceptional innovation and accelerated maturation potential, and is simply a coveted milestone for investors and founders.

California task superior steadfast Tribe Capital and Pelion Ventures led the backing round, with enactment from Marbruck Ventures, True Arrow and Y Combinator.

Kapital Bank volition usage the funds raised successful the Series C circular to physique an AI-driven fiscal ecosystem to amended concern performance, according to LatAmList, a mag focusing connected startup and task superior quality successful Latin America.

A Series C circular is simply a late-stage backing circular for a palmy startup, typically focused connected importantly expanding existing operations to entree caller markets and geographies. 

Investors successful Series C rounds — often a last measurement earlier an archetypal nationalist offering (IPO) — often see established task superior firms, backstage equity firms and different fiscal institutions seeking important returns by investing successful a mature, little risky company. 

Fintech Futures reported that Kapital antecedently raised US $40 cardinal successful Series B equity financing and a US $125 cardinal indebtedness installation successful December 2023, preceded by a $23 cardinal Series A circular and $45 cardinal indebtedness installation successful May 2023. 

The Delaware-incorporated but Mexico City-based fintech company, founded successful 2020 by CEO Saul, CFO Fernando Sandoval and managing manager Eder Echeverria, has besides carried retired respective high-profile purchases of much accepted banking operations.

CIBanco, Intercam merchantability disconnected assets arsenic US extends slope authorisation deadline

In 2023, Kapital bought Mexican slope Autofin to sidestep the lengthy process of independently applying for a banking license.

The institution made headlines past period upon announcing it would acquire Mexican fiscal radical Intercam’s brokerage, plus absorption and operational banking assets.

Intercam was among the Mexican fiscal institutions deed by U.S. sanctions successful June owed to money-laundering accusations.

Reuters reported that Kapital is “working with U.S. and Mexican authorities to guarantee compliance successful the purchase.” The acquisition besides involves a US $100 cardinal concern successful banking operations.

Kapital Bank, with operations successful Mexico, Colombia and the U.S., offers banking services for individuals, including accounts, investments, and credit. 

The fintech institution besides offers banking services for SMEs (Small and Medium-sized Enterprises), including concern checking accounts, loans, and wealthiness absorption tools.

Customers tin negociate their finances, transportation wealth and wage bills done Kapital’s online and mobile platforms.

With reports from Reuters, LatAmList, La Jornada and Fintech Futures