Klar, a leading digital bank with its headquarters in Mexico City, confirms equity funding of $70 million. The valuation now stands at $500 million for the company. The funds come after swift expansion.
The Klar CEO and Co-Founder, Stefan Moller, states that Klar grew its revenues by seven times (year-on-year), while increasing its transaction volumes by four times alongside. Over the last year, Klar had 1.4 million customers under its belt. It also enabled loans valued at $100 million and counting.
He feels that the bank is already viewing the advantages of scalability. It is now expanding at a lower cost and organically getting customers. He does not wish to reveal earlier revenues or customer figures. General Atlantic also scaled up its commitments to the bank sometime earlier. The round also had other investors like Quona Capital, Prosus Ventures, Endeavor Catalyst, and IFC, along with Acrew and Mouro. WTI also came in with venture debt of $20 million. The company has already got $150 million+ via equity from the start of 2019.
The objective at Klar was always to become the Chime of Mexico. Yet, the goal has witnessed evolution over the years. Mexico represents a massive opportunity since only 15% there has formal credit access. Moller feels that 40% of clients are getting more access to financial products at Klar. This will drive the company’s growth in the future. Hence, this is a big market where Klar will scale up its market share. It will also keep growing its service offerings to take on legacy or traditional banks. Klar is now about fully digital and free options for customers.