Klar, a Mexico-based challenger bank working to democratize bank services in Mexico by offering a 100% digital, transparent, free and secure alternative to traditional credit cards and debit services, today announced its Series Seed financing of $7.5 million.
Klar also announced it has raised an additional $50 million in debt funding. The round was led by Quona Capital, a fintech venture firm which leverages a strategic relationship with Accion, with participation from Santander Innoventures, aCrew (ex-Aspect Ventures), FJ Labs, Arc Labs, and Western Technology Investment. The funding will provide capital to help Klar launch its product in Mexico, and reach 100,000 new users in 2020.
Klar is an international team of 30 people with offices in Mexico and Berlin, led by its co-founders Stefan Moller, Daniel Autrique, and Gianluigi Davassi. Each of the founders brings unique experience to bear on the company: Moller, Klar's CEO, has focused his career on helping tech companies in Mexico and Germany; Autrique, Klar's CFO, is a Stanford-educated Mexican economist; and Davassi, Klar's CTO, previously helped build N26, today valued at almost $4 billion.
Unlike traditional financial institutions, Klar provides consumers with a unique set of features and benefits, including:
Simplicity: consumers can open an account online in 5 minutes
Zero costs: Klar requires no minimum balance and charges no transfer fees
Cashback: Klar rewards consumers with cash, not points (depending on the account balance)
Control: Consumer cards are linked to the Klar app, where deposits and expenses are visible, money can be sent and received instantly, and payments can be made in real-time. Consumer cards can easily be locked and unlocked as needed.
Easy to Understand Credit Terms: Klar breaks down principal and interest into installments that are easy to understand and manage
Fair Credit Assessment: Klar assesses creditworthiness from account history, not through a credit bureau
Security: Klar is powered by Mastercard, maintains compliance with Banco de Mexico regulations, and is protected by the highest security standards in the industry
"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," says Klar co-founder and CEO Stefan Moller. "We believe Klar will dramatically change banking access across Mexico."
Moller continued, "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."
"Quona has been excited about Klar from the very first meeting," said Jonathan Whittle, Quona Capital co-founder and partner. "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 was founded in 2018 by co-founders Stefan Moller, Daniel Autrique, and Gianluigi Davassi to lead the democratization of bank services in Mexico by offering an alternative to traditional credit cards and debit services. Services are available via mobile app, without traditional fees found at banks. Klar is designed to be 100% digital, transparent, free and easy to use for consumers.
For more information, visit klar.mx
About Quona Capital
Quona Capital is a growth stage venture firm focused on fintech for inclusion in emerging markets. Quona partners have deep experience as investors and entrepreneurs in both emerging and developed markets, and look for founders whose companies have the potential to provide outstanding financial returns and promote breakthrough innovation in financial inclusion. To date, Quona has supported more than 25 financial technology companies expanding access for underserved consumers and small businesses in Latin America, South and Southeast Asia, and Sub-Saharan Africa. Quona got its start through a strategic relationship with Accion, a global nonprofit with a pioneering legacy in microfinance and fintech impact investing. The firm has offices in Washington D.C., Bangalore, Cape Town, Mexico City and Singapore.
For more information, visit quona.com