Mexican fintech Stori has raised $32.5 million in a Series B funding round to bring credit cards to the country's middles class.
Lightspeed Venture Partners led the round with participation from existing investors Vision Plus Capital, BAI Capital and Source Code Capital.
Stori is building a digital banking platform but is currently focussed on credit card issuing, targeting Mexico’s mass-middle and emerging-middle income populations. Currently, less than 15% of Mexico’s adult population have access to a credit card. Meanwhile, Brazil, with similar GDP per capita, sees three times higher penetration.
This is largely because many people do not have a solid credit history, something Stori is tackling by using machine learning to improve underwriting. The company has also introduced a full in-app experience, meaning that people do not need to go to a physical location to apply for a card.
Stori CEO Bin Chen, who has worked at Capital One and Mastercard, says: "By tailoring global best practices in underwriting, technology and user-friendly design, combined with rapid iterations, we’ve found the right formula to deliver a compelling product and experience to the large underserved population in Mexico"