Stori, a Mexican fintech bringing credit cards to the country's middles class, has raised $125 million in a Series C funding round, adding another $75 million in debt financing.
The over-subscribed Series C was co-led by GGV Capital and GIC, with participation from General Catalyst, Goodwater Capital, Tresalia Capital, Lightspeed Venture Partners, 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. 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.
More than two million Mexicans have applied for a Stori credit card, and that number has grown by more than 10 times in the last twelve months. Over the next year, the firm is committing the $200 million raised in Mexico to triple in size and broaden its suite of products.
The startup is not the only digital player to have spotted the credit card opportunity in Mexico; Brazilian giant Nubank has committed significant funds to pushing its offering in the country, signing up millions already.
Bin Chen, CEO, Stori, says: "Our mission - empowering financial inclusion for millions of hard-working people - is amazingly meaningful and challenging at the same time. We are progressing at an unprecedented pace by combining technology, machine learning, data-driven underwriting and an intuitive mobile-based user experience. A lot more will come in our journey to become a top consumer financial franchise in Latin America."