With $50M equity raise, Mexican fintech startup Stori reaches unicorn status.
Mexican fintech startup Stori has just achieved a major milestone—becoming a unicorn with a $50M equity raise. This marks a significant moment not just for Stori but also for the entire fintech industry in Mexico.
This article will explore how Stori achieved this feat, their challenges, and what it means for the industry.
Mexican fintech startup Stori reaches unicorn status with $50M equity raise
Mexican fintech startup Stori has recently reached unicorn status through a massive $50M equity raise. Founded in 2016, Stori is an innovative financial technology company that uses an AI powered platform to provide accessible and affordable access to the banking and financial inclusion system.
Stori aims to enable everyone to save and transact with digital money, regardless of income or background. The platform offers users secure and convenient wallets linked directly to a debit card which they can use without extra fees or hidden charges. Utilising digital identity verification as part of their signup process, Stori enables people to access new services that have traditionally been restricted due to their limited economic resources.
In addition to the consumer-facing products such as their wallet service, Stori provides businesses with a secure access point for collecting customer payments online. The secure payment portal helps businesses drastically reduce costs associated with collecting customer payments by streamlining the process via automated processes within their platform.
Through this venture capital investment round, Stori is poised to continue its mission beyond Mexico, offering services in up-and-coming markets such as Latin America and Africa. With an impressive team of professionals, successful pilots already launched in Honduras, Bolivia
and Peru – and further countries lined up – Stori is setting itself up for bigger opportunities in 2021.
Background on Stori’s equity raise
In April 2021, a Mexican start-up called Stori boosted its profile significantly. It secured $50 million in equity funding, becoming the first fintech company in Mexico to reach unicorn status. This company started in 2019 and has earned its success by providing digital banking solutions to customers in the Latin American nation.
Stori’s fundraising event was a major coup for the firm, as some herald the investment as a sign of fintech’s potential in Mexico’s fast-growing economy. The equity fundraise was led by notable venture capital firms such as QED Investors, FinTech Collective and Backed VC. Furthermore, prominent business leaders such as Mark Cuban have backed Stori and believe it can achieve great things in finance technology and beyond.
The funding will enable Stori to continue investing heavily into research & development and capitalise on untapped opportunities within Mexico’s finance industry. The Mexican firm is poised to launch several new products designed with customer convenience at heart, including credit acquisition and payments solutions. Through this equity capital raise, Stori hopes to put itself at the forefront of digital banking services across Latin America by helping individuals make more informed decisions about their money management options – without geographical limitation or reliance on legacy financial institutions.
Equity Raise Details
Mexican fintech startup Stori has just reached the coveted unicorn status after closing a $50M equity raise. This raise further solidifies the startup’s leadership in the fintech space and will allow Stori to expand their offering and reach new markets.
Let’s dive into the equity raise details, and explore what this means for the future of Stori.
On April 21, 2021, Mexican fintech startup Stori announced that it had successfully closed a $50 million equity investment round. The round was co-led by Insight Partners and Endeavor Catalyst, with additional participation from Propel Venture Partners, Valar Ventures and existing investors.
This funding makes Stori the first Mexican fintech to reach “unicorn” status — a title for companies with an estimated valuation of more than USD 1 billion. As part of the terms of the deal, Insight Partners and Endeavor Catalyst will receive seats on Stori’s board of directors.
Stori is a digital banking platform designed for all types of customers in Mexico. The company provides financial access to underserved populations through its accounts and products to educate financial literacy in their customer base. In addition to the equity investment, Stori has access to capital markets debt worth up to USD 200 million as part of their growth strategy.
The most recent $50M raise brings Stori’s total capital since 2017 to over USD 100M. With this new wealth, the company plans to expand its product offerings while increasing customer acquisition in Mexico and abroad.
Mexican fintech startup Stori recently announced the completion of a $50M equity raise, raising the total amount of funding to over $75 M, and giving the company a valuation of more than $1 billion, thus reaching unicorn status. The equity raise comprised three investors: Social Capital, Fondo Sureste and Fondo Vista.
Social Capital is a late-stage venture capital firm with an international presence that focuses on technology shaped by emerging markets. Similarly, Mexican Funds Fondo Vista and Fondo Sureste are venture capital funds dedicated to investing in local high-growth technology startups in the country.
The funds will be primarily used to expand Stori’s presence throughout Latin America and grow its product portfolio and specific products such as their invoice financing tool that allows small business owners access to liquidity without relying on bank loans or mortgaging their assets.
What the Funds Will Be Used For
The influx of $50 million raised in equity will fuel the growth of Mexican fintech startup Stori, allowing the company to reach unicorn status. According to the company, they plan to use a portion of the funds to develop new technologies and products to serve their rapidly growing customer base and increase their global presence.
The funds will also be used for aggressive marketing campaigns and research & development initiatives to ensure Stori remains at the forefront of fintech innovation. Furthermore, they will allocate resources to attract and develop talent and expand their capacity to benefit from economies of scale.
In addition, Stori is building a strong financial foundation by investing in automation technology such as artificial intelligence (AI) for fraud detection and risk analytics; big data analytics; and blockchain technology. Each of these investments is aimed at helping them gain an edge on their competitors with improved user experiences that customers could expect from a market leader like Stori.
Impact of the Equity Raise
The recent equity raise of $50 million has propelled Mexican fintech startup Stori to reach unicorn status. It is a momentous occasion for the startup, whose growth and this equity raise have largely driven success.
Let’s explore the impact of this monumental event on the startup and its prospects.
How it Will Help Stori Grow
Stori’s latest equity raise of $50 million will help the Mexican fintech startup reach unicorn status. With these new funds, Stori is better positioned to invest in its future growth. The new capital raises will allow the company to expand into new markets, acquire stakes in other companies, and further invest in its core products.
Providing tailor-made financial solutions for Latinos is at the heart of Stori’s mission and this capital raise makes it possible for them to reach more customers. They now have more resources dedicated to developing tools that make it easier for their customers to access and benefit from financial services. This includes creating digital banking products that enable people from Latin America and beyond to open bank accounts even without having a physical presence where traditional banks exist such as in areas with low financial inclusion like rural territories or places lacking banking infrastructure altogether.
Additionally, Stori now has a stronger digital presence given the current demand due to COVID-19. This makes it easier for them to communicate with their current customers and entice potential users who may not have heard of their services before due to lack of branches or meaningful engagement platforms across Latin America and beyond.
Moreover, they can now deepen their product offering by introducing new products such as microloans designed specifically for individuals who are vulnerable during economic downturns caused by pandemics or economic recession.
With the recent $50 million equity raise, Stori is empowered to keep up with its mission while meeting growing demands from its base of customers in Mexico and throughout Latin America.
What it Means for the Fintech Industry
The success of Mexican fintech startup Stori confirms the viability of fintech investments. By hitting the coveted ‘unicorn’ status, Stori has shown that technology investments can be lucrative and positively impact millions across Latin America and beyond. This equity raise is a testament to the increasing potential for fintech investment returns and industry growth.
The $50M equity raise demonstrates the potential of venture capitalists increasingly focusing on opportunities in emerging markets like Mexico. Moreover, with this onboarding of new capital, more investors become attracted to other talents and markets, signalling an increase in investment activity and confidence in the fintech industry at a global level.
This success story paves the way for other innovative financial services technologies companies to use capital raising strategies to expand their markets and offerings. As more entities emulate Stori’s resourcefulness, powerful new options will emerge for banking customers across Latin America, helping them access technology-driven financial products like never before.
Overall, Mexican finTech start up Stori’s successful $50M equity raise shows that emerging markets are primed for growth in banking technologies — as long as entrepreneurs prove their value by transforming consumer habits and creating long-term customer loyalty with advanced customer experience solutions.