Klar intends to use the funding proceeds as capital for launching its product in Mexico, and reach 100,000 new users in 2020
Image: Klar has secured $7.5m (£6m) in Series Seed financing and an additional $50m (£40m) in debt funding. Photo: Courtesy of Akshay93 from Pixabay.
Mexico-based challenger bank Klar announced that it has secured $7.5m (£6m) in Series Seed financing and an additional $50m (£40m) in debt funding.
The financing round was led by Quona Capital, a venture capital firm investing in growth-stage fintech companies, and participated by Santander Innoventures, aCrew, FJ Labs, Arc Labs, and Western Technology Investment.
Quona Capital co-founder and partner Jonathan Whittle said: “Quona has been excited about Klar from the very first meeting. The Klar team has built a solution that we believe can have a dramatic impact on financial inclusion in Mexico. We’re happy to put our support behind the Klar team and its alternative debit card with credit offering.”
Klar is aimed at democratising bank services in Mexico
Klar said that it works on democratising bank services in Mexico by providing a digital, transparent, free and secure alternative to traditional credit cards and debit services.
In addition, the bank intends to use the funding proceeds as capital for launching its product in Mexico, and reach 100,000 new users in 2020.
Klar is set to provide its consumers with a unique set of features and benefits including simplicity in opening an account online, zero costs with no minimum balance and charges or transfer fees, cashback to reward consumers with cash instead of points, control with cards linked to the Klar app
Klar said that it breaks down principal and interest into easily understandable and manageable installments, and assesses creditworthiness from account history, avoiding a credit bureau.
Besides, the Klar app displays deposits and expenses, allows instant money transfer, real-time payments, and capable of easily locking and unlocking consumer cards whenever needed.
The bank is powered by Mastercard, and maintains compliance with Banco de Mexico regulations, and is claimed to be protected by the industry’s security standards.
Klar co-founder and CEO Stefan Moller said: “Klar is the future of banking, and the good news is that it’s open to all Mexicans, not just a few. Today just 15% of adults in Mexico have access to a credit card, and only 3% of credit applications from middle class consumers are approved. We believe Klar will dramatically change banking access across Mexico.”
“This fundraise from Quona Capital, along with the support of our other investors, provides us with growth capital and support we need to democratize banking in Mexico and offer the best service possible to all who need it.”