Klar Announces USD $90M Funding Round to Continue Reinventing Personal Digital Finance in Mexico
MEXICO CITY–(BUSINESS WIRE)–Klar, a leading digital financial services platform providing a transparent, free, and secure alternative to legacy banking services in Mexico, today announced a USD $90M funding round led by General Atlantic, a leading global growth equity firm. Prosus Ventures, Quona, Mouro, IFC, Acrew, WTI, and Endeavor Catalyst also participated in the round. Klar plans to leverage the funds to further enhance its platform with innovative solutions tailormade for the Mexican market, explore strategic acquisitions, deepen the Klar ecosystem by touching more customers via new distribution avenues, and invest in its team and talent.
Founded in 2019, Klar is focused on reinventing the Mexican financial services industry and expanding access to digital banking with a technology- and customer-first approach. Klar offers solutions for consumers spanning all financial needs, including spending (with credit, mobile payments, and rewards program offerings) and borrowing (with personal loan, salary advances, and buy now, pay later services). Since its founding, Klar has grown to become the largest Mexican digital finance platform and the most recognized Mexican financial innovation brand by Mexican consumers.
By employing cutting-edge technology, proprietary data science, and thoughtful customer service, Klar eliminates the bureaucracy and confusion typically associated with traditional banks. In a market that is ripe for increased penetration – currently, 85% of the population lacks formal access to credit and 50% remain unbanked today – Klar has focused on providing a simple and transparent digital-first experience. 40% percent of Klar’s customers have access to digital products for the first time, and the resonance of Klar’s offering is reflected in its net promoter score (NPS) of 80 – approximately 4x that of traditional banking incumbents.
“Since its inception, Klar has aimed to empower millions of consumers across Mexico with simple and transparent offerings that enable them to live better lives,” said Stefan Möller, Co-Founder and Chief Executive Officer of Klar. “We see an opportunity to provide bespoke solutions to Mexican consumers who are eager to adopt technology, and who are not adequately served by anachronistic institutions. We are thrilled to have the continued support of General Atlantic and our investor base as we focus on creating simpler and more transparent financial solutions for our customers.”
“Klar demonstrates a deep understanding of the Mexican market – counter to foreign players and legacy incumbents – and has focused intently on creating a suite of products that cater to these unique needs. As digital adoption in Mexico accelerates, we believe Klar is well positioned to continue its exciting growth trajectory, and we are pleased to extend our partnership with Stefan and the team,” commented Luis Cervantes, Managing Director and Head of General Atlantic’s Mexico office.
Klar has added 1.4M customers in the past 12 months, experiencing a 7x revenue increase and 4x transaction volume increase year-over-year. With this latest investment, the company has raised more than $150M in growth funding, the largest amount raised by any Mexican neobank to date.
The transaction is subject to applicable regulatory approvals, including clearance of the Mexican Banking and Securities Commission (CNBV).
About Klar
Klar has been working to democratize financial services in Mexico since 2019 by offering a 100% digital, transparent, free and secure alternative to traditional credit and debit services. Unlike traditional institutions, Klar provides users with a unique set of features and benefits, including:
- Simplicity: Users can open online an account on the platform in five minutes through the Klar app.
- Zero Costs: The account requires no minimum balance and charges no fees.
- Cashback: Klar Card rewards users with cashback on all their purchases.
- Free-fee overdraft: All Klar Card users access an overdraft up to $1,000 pesos with no overdraft fees.
- Salary advance: Get paid early with direct deposit
- Access to credit: Klar offers credit lines up to $20,000 pesos without referencing the users’ credit bureau score.
- Security: Klar is powered by Mastercard, and the platform is protected by the highest standards in the industry.
For more information, visit: https://www.klar.mx/
About General Atlantic
General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic currently has over $84 billion in assets under management inclusive of all products as of December 31, 2021, and more than 215 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, Singapore, Stamford and Tel Aviv. For more information on General Atlantic, please visit the website: www.generalatlantic.com.
Contacts
Media
General Atlantic
Emily Japlon & Kate Huneke
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