- The fintech claims to have hundreds of customers in Mexico, including the payroll advances startup Minu;
- So far, the company has raised $7.8 million in a series of seed rounds, making the total raised $42.1 million.
San Francisco-based fintech Tribal Credit announced it has raised a combined Series A and debt round of $34.3 million. The investment was led by QED Investors (that recently led a $15 million round in Brazil’s fintech Hash) and Partners for Growth (PFG). Existing investors BECO Capital, Global Ventures, OTG Ventures and Endure Capital also took part in the round, joined by new investors Endeavor Catalyst.
According to Tribal Credit COO, Duane Good, the Series A funding round will help the fintech to scale its business faster, and further accelerate its growth in Mexico, continuing its mission of financial inclusion.
“We are uniquely positioned to serve high-growth SMEs and startups transacting both locally and globally. We offer both locally issued Visa business cards as well as international US dollar cards. Our customers will benefit from lower fees and comprehensive merchant acceptance.”
The fintech claims to have hundreds of customers in Mexico, including the payroll advances startup Minu, the e-commerce financing platform Fairplay, the tech solutions firm in LatAm SLM, and the online optical store in Mexico Ben & Frank.
As part of the infusion, Tribal received $3 million from the Stellar Development Foundation, a nonprofit organization that supports the development and growth of the open-source Stellar blockchain network. According to the fintech, the investment will facilitate the development of Tribal’s blockchain products and integration onto the Stellar network.
With the new round, Tribal Credit is targeting to aid small and medium-sized businesses in emerging markets, such as Mexico, that had difficulties in getting a traditional corporate card approval.
Tribal Credit’s business model
Tribal Credit beta launched in December 2019 offering corporate cards and a spend management platform for startups and SMEs in emerging markets. With demand growing for better online B2B banking experiences since the pandemic started, the company expanded its payments and financing products to include Tribal Pay, helping customers settle non-card purchases and benefit from extended payment terms.
Through a proprietary AI-driven approval process, Tribal Credit provides SMEs with virtual and physical corporate cards, and offers a digital platform that allows founders and CFOs to give access to and manage the spend of their distributed teams.
According to Tribal Credit, every year there are 62 million Latin America SMEs transacting globally, and the region’s market represents a $15 billion opportunity, led by Mexico, that is currently Tribal Credit’s biggest market.
“This round allows us to accelerate our growth in Mexico and help the new generation of SMEs fueling the Mexican economy break free from local financial barriers,” said Tribal Credit CEO Amr Shady, in a press statement.
“Tribal has had strong traction in Mexico, with adoption from fast-growing startups across the country, including many companies within our own portfolio. Through the combination of a unique product and an incredibly talented team passionate about solving a real problem, it’s no surprise that Tribal has quickly become an innovative disruptor in a red-hot market,” said Lauren Morton, partner at QED Investors.
As a global specialty lending firm focused on the tech sector with deep experience structuring fintech warehouse lines, PFG is providing the debt facility. Managing Director Armineh Baghoomian said that the Tribal team has identified a significant unmet need in Mexico and developed a compelling product to enhance access to financial services. “We look forward to growing with Tribal as they continue to scale in Mexico and across emerging markets globally.”
In addition to funding from PFG’s global fund, PFG will be co-investing from its Latin America Growth Lending Fund in partnership with IDB Invest and SVB Financial Group, the parent company of Silicon Valley Bank.
Tribal Credit is hiring
As part of growth, Tribal Credit is looking to fill different positions based out of Mexico. So far, the company has raised $7.8 million in a series of seed rounds, making the total raised $42.1 million.
Tribal Credit also joined Visa’s Fintech Fast Track Program, adding it to an elite group of fintechs and accelerating its integration with Visa’s global payment network.