Mexican Challenger Bank Fondeadora Adds $14 Million To Its Series A
Image Credits @ Fondeadora
Fondeadora is about to introduce new features, including a company account (SME) called FONDeadora Negocio and a metal card for its best customers. The bank also announced an impressive merger with Mibo (the former Weex) for more information. It is a logical step, considering that Mibo has collected over 1 million downloads of its app, more than 100,000 issued debit cards, and more than 300 billion Mexican pesos in deposits, as well as more than 2.5 million US dollars from investors.
The valuation of the company has doubled with the round extension. Establishing a challenger bank is a good opportunity for most people in Mexico who depend on cash. For many, the company is their first bank account alongside their existing customers. It does not run any branches or banking services.
Muller, Fondeadora co-founder Rene Serrano team traveled to Mexico to find a bank charter they could use. Kickstarter then launched as a bank with no services. The company became FONDeadora as we know it today, as a challenger bank that wanted to improve the banking experience in Mexico.
Y Combinator Scott Belsky, Sound Ventures, and fintech collective Ignia contributed to the funding. Mexico represents a huge opportunity for banks, as many people still rely on cash for most of their transactions. With the country switching from cards to digital payments, it seemed the right time for Fondeadora.
The prospect of a legacy bank like Fonterra could transform the primary current account for many people. For most people who rely on money from outside Mexico, a challenging financial institution is a good alternative. The company’s valuation doubles with the spherical expansion.
As well as consumers of legacy banks, Fondeadora has evolved from a start-up bank account for a few individuals. But for most people who rely on funds from outside Mexico, setting up a challenger bank is an excellent opportunity. The Bank does not have a functioning banking services department.
In reality, Zeta is working with the First Republic and Chase as replacements, providing a digital level of banking services that integrate with existing bank accounts. The tools it is trying to give existing transactions – begging for rent checks, splitting grocery bills, half-hearted dinners, handouts – an easy way to close them.
“The platform is clean and sophisticated, Fondeadora has an excellent UX front end that is great, clean, minimalist, and modern. As users, we think that the best word to describe them is digital, they want to dominate the digital atmosphere and make a lot of noise on social media.