In contrast to the United States, where credit cards are widely used, people in Latin America — particularly those with lower incomes — have traditionally made payments using cash. Stori is here. The firm said that it had secured an additional $50 million in equity at a $1.2 billion valuation. It provides credit cards to underprivileged areas in Mexico. Additionally, $100 million in loan funding has been arranged.
However, the LatAm industry has changed recently, and more individuals are using credit cards as a form of payment as a result of greater digital use. The issue is that those with bad or no credit have problems obtaining them.
In addition to participation from other current and new investors, such as Lightspeed Venture Partners, General Catalyst, Vision Plus Capital, Goodwater Capital, and Tresalia Capital, the equity component of the deal was co-led by BAI Capital, GIC, and GGV Capital.
Stori has now secured more than $200 million in equity capital since its founding in 2018 with its most recent round.
The business said in September of last year that a $75 million financing facility and $125 million in equity had been completed. Compared to that fundraising, the current $1.2 billion value represents a “more than 25% rise,” according to Stori CEO and co-founder Bin Chen.
This is significant since extension rounds are typical—if not always—raised at flat values. The fact that Marlene Garayzar, chief governance officer and co-founder, is said to be the first Mexican woman to have started a unicorn technology firm in the nation is also noteworthy.
According to Chen, who declined to provide specific sales statistics, the fact that Stori saw “20x” revenue growth in 2021 contributed to the company’s valuation being raised for the Series C extension. The firm generates income through interest and interchange fees on transactions made with its credit card products.
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