INSUBCONTINENT EXCLUSIVE:
Another startup hoping to capitalize on the fintech opportunity in Mexico has closed on a new sum of funding
Mexican challenger bank Albo has secured a $19 million extension to its Series A financing, led by U.S.-based Valar Ventures
This marks one of the larger early rounds for a Mexican startup
Albo joins the ranks of other Mexican startups that have raised larger-than-average Series A rounds, like Y-Combinator backed scooter
company Grin that scored a $45.7 million Series A and Klar, the Chime clone that raised $57.5 million in debt and equity seed funding.Albo
The fund, which was founded by Peter Thiel, notably invested in N26 and TransferWise
Out of the 130 million population of Mexico, 45% are underbanked
While underbanked users have access to bank accounts, deep financial products designed to help them compound wealth through lending and
savings features do not exist in the Mexican market through traditional banks
This leaves what founder 31-year-old Angel Sahagun describes as a total addressable market of 59 million people in Mexico alone.Traditional
market share in Mexico with 200,000 monthly active customers who are spending and making transactions in its platform
But it is far from the only consumer neobank option in the country
Nubank says it has 8.5 million clients in Brazil, and the startup is reportedly fundraising at its $10 billion valuation
team has raised $26.4 million to scale its leading neobank.Sahagun says that while there may be some overlap in Nubank and Albo customers,
the offerings are different
fintech product launching or getting funded seemingly every day, the market is growing saturated
But this will raise challenges around acquiring customers and hiring, and fundraising will undoubtedly get harder for those who want a piece
Albo will use the capital to build out new features: a savings product that lets users improve spending and saving habits, and what it says
