After a $150 million round, Mexican fintech Stori achieves unicorn status

After a $150 million series C investment round, the fintech startup Stori, which loans to many unbanked Mexicans, has become the second Mexican setup in 2022 to reach a value of more than $1 billion, earning it the title of “unicorn.”

With the round, headed by BAI Capital, Singapore’s GIC, and GGV Capital, Stori’s valuation increased to $1.2 billion. Along with Tresalia Capital, other participants included General Catalyst, Vision Plus Capital, Goodwater Capital, and Lightspeed Venture Partners.

After logistics firm Nowports in May, the fintech became the second unicorn this year. It also received the round of $100 million in debt.

Stori’s co-founder and the first female unicorn CEO from Mexico, Marlene Garayzar, told Reuters that the cash will be put to use “to grow our portfolio with financial education services and reach more customers of our credit card product in Mexico.”

When Stori started researching the industry, she said that around 12% of Mexicans were using credit cards.

According to data from the nation’s statistics office, just 31% of Mexicans have access to some form of credit, and the majority of those who do still frequently utilise charge cards issued by merchants.

To find out what they required, she added, “we spoke to potential consumers, and the majority of them indicated access to credit, not simply a card, as they wanted a method to start establishing their credit record and getting access to credit in the market.”

99 percent of its applications are accepted by Stori, which offers loans starting at 500 Mexican pesos ($24), and tries to process card requests under 10 minutes.

The company, which has far more than 1.4 million clients in Mexico, aspires to reach 2 million by 2023, according to Garayzar. Next year, it also intends to grow in additional Latin American nations, she added without mentioning which ones.

Leave a Reply

Your email address will not be published.