Mexico-based fintech Klar, a digital financial services platform providing banking services such as digital accounts and credit lines, announced a $90 million funding round led by US growth equity firm General Atlantic. Prosus Ventures, Quona, Mouro, IFC, Acrew, WTI, and Endeavor Catalyst also participated in the round. With this latest investment, the company has raised more than $150 million in growth funding.
With the newly raised capital, Klar plans to further enhance its platform with solutions tailor-made for the Mexican market, explore strategic acquisitions, increase the user base by reaching more customers via new distribution avenues, and invest in its team.
Klar was founded in 2019 aiming to offer a 100% digital alternative to traditional credit and debt services. The fintech launched a portfolio that includes a digital account that can be opened in a few minutes through Klar’s app with no minimum balance required or fees; cashback on users’ purchases paid with Klar Card and salary advance.
Eyeing a target audience that usually finds some difficulty accessing credit, Klar allows its users access an overdraft up to $1,000 Mexican pesos with no overdraft fees, and offers credit lines up to $20,000 pesos without referencing the users’ credit bureau score. “Since its inception, Klar has aimed to empower millions of consumers across Mexico with simple and transparent offerings that enable them to live better lives,” said Stefan Möller, co-founder and CEO of Klar.
Klar’s motto is to “reinvent the Mexican financial services industry and expand access to digital banking with a technology- and customer-first approach” in a country where currently, 85% of the population lacks formal access to credit and 50% remain unbanked today. That’s why Klar has focused on providing an easier digital-first experience – the startup reports that 40% of its customers have access to digital products for the first time, and the resonance of Klar’s offering is reflected in its net promoter score (NPS) of 80 – approximately 4-fold that of traditional banking incumbents.
According to Klar, it has added 1.4 million customers in the past 12 months, experiencing a 7-fold revenue increase and a 4-fold transaction volume increase year-over-year.
“We see an opportunity to provide bespoke solutions to Mexican consumers who are eager to adopt technology, and who are not adequately served by anachronistic institutions. We focus on creating simpler and more transparent financial solutions for our customers”, said Möller.
Luis Cervantes, managing director and head of General Atlantic’s Mexico office said Klar “demonstrates a deep understanding of the Mexican market – counter to foreign players and legacy incumbents – and has focused intently on creating a suite of products that cater to these unique needs.”