Klar, a leading digital financial services platform providing a transparent, free and secure alternative to traditional debit and credit services in Mexico, today announced its Series B funding round, subject to applicable regulatory approvals, including clearance of the Mexican Banking and Securities Commission (CNBV) and the Mexican Economic Competition Commission (COFECE). General Atlantic, a leading global growth equity firm, led the round with participation from existing investors Prosus Ventures, Quona Capital, Mouro Capital, International Finance Corporation and WTI. The funding will be used to strengthen Klar’s efforts to broaden access to consumer credit as Mexico’s transition to a digital economy accelerates through product and proprietary technology expansion.
Founded in 2019, Klar’s vision is to become the primary financial services platform of its users by offering a full suite of products. Since its founding, the company has undergone rapid and significant growth in its efforts to provide the underbanked population in Mexico access to consumer credit through its free, mobile-first platform. It has opened more than 700,000 accounts to date, with transactions on the platform having increased by 60% each month in 2021. Today, 100% of Klar’s users have access to its fee-free overdraft line and more than a third of its users utilize its lending product.
“We founded Klar to expand credit access to all Mexicans, many of whom have been overlooked by the traditional banking system. As a digital-native, holistic platform, we provide our clients with the ability to transact in an increasingly digital economy,” said Stefan Moller, Co-Founder & CEO of Klar. “Our growth to date is emblematic of the critical nature of our services in this underserved region. Partnering with General Atlantic, a renowned global investor with deep experience in technology and financial services, will be a key enabler in our mission to innovate and expand into a truly digital financial services platform in this market.”
“The leadership team at Klar brings the vision, technical expertise and financial services credibility to be a breakout player that disrupts the Mexican financial services industry and has the potential to scale into the country’s leading full-service digital financial services platform,” said Martín Escobari, Co-President, Managing Director and Head of General Atlantic’s business in Latin America. “We are proud to partner with the company, which brings a differentiated tech stack and product offering, to accelerate its mission of broadening financial access and inclusion across Mexico.”
“Our investment in Klar builds on General Atlantic’s track record of investing in forward-thinking, digital financial services businesses globally,” said Luis Cervantes, Managing Director and Head of General Atlantic’s Mexico City office. “Mexico is the one of the last major economies to transition to a digital ecosystem, and we look forward to supporting Klar in its mission to promote transparency and innovation.”
As part of the transaction, Mr. Cervantes and Sofia Garrido, Vice President at General Atlantic, will join Klar’s Board of Directors. Klar marks General Atlantic’s sixth investment in Mexico since 2014, when it first entered the country. Since then, General Atlantic has invested USD$1 billion in high-growth Mexican companies with two unicorns, Kavak and Clip, in its portfolio.
Prior to the current funding round, Klar raised more than USD$27.5 million since its inception in 2019, including a $15 million Series A Round last year led by Prosus Ventures, alongside Quona Capital, Mouro Capital and International Finance Corporation.
Klar Group’s products are offered through its own subsidiaries, including Klar, which offers and operates the Klar Credit Card, and Merci Pay, which offers electronic payment funds’ accounts and is in the process to obtain its authorization from the National Banking and Securities Commission under the Eighth Transitory Article of the Mexican Fintech Law.
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