The funding will help Klar expand the reach of its banking-based model in Mexico. Here are the top-line bullets you need to know.
Klar, a digital bank, has raised $90M in a mix of debt and equity. The $70M Series C round drew participation from Acrew Capital, Endeavor, and General Atlantic, among others. The $20M in debt financing was provided by Western Technology Investment.
HOW’S THE COMPANY PERFORMING?
- Mexico-based Klar allows its customers to manage their money via a mobile app and a debit card that offers the same benefits as a credit card.
- Over the past 12 months, the platform has advanced more than $91M in credit lines. It has also seen its revenue and transaction volume grow by 7x and 4x, respectively.
- Klar is supported by a team of 400 employees spread across Mexico, Berlin, and Boston.
WHY DOES THE MARKET MATTER?
- The global digital banking market is expected to reach a value of $1.61T by 2027, growing at a CAGR of 8.9%, according to Research Dive.
- 3.6B individuals — roughly 1 out of every 2 adults — will use digital banking services across mobile and desktop platforms by 2024, according to Juniper Research.
- Worldwide adoption of smartphones and the internet has also increased mobile or digital banking platform usage.
- Global shutdowns and branch closures amid the Covid-19 pandemic also spurred the adoption of digital banking.