Stori, a Mexican fintech bringing credit cards to the country's middles class, has hit unicorn status after raising $150 million in debt and equity.
The Series C-2 financing includes a $50 million equity investment from BAI Capital, GIC, and GGV Capital, along with participation from Lightspeed Venture Partners, General Catalyst, Vision Plus Capital, Goodwater Capital, Tresalia Capital and Davidson Kempner Capital Management LP.
Additionally, Davidson Kempner arranged a $100 million debt facility.
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.
Having already signed up 1.4 million customers in Mexico, the firm will use the new funding to make hires and extend product offerings beyond the credit card. It also plans on expanding its geographic reach across Latin America targeting 100 million underserved consumers.
Bin Chen, CEO, Stori, says: "By addressing key pain points of our customers with a simple and mobile-first experience, we hope to play a major role in democratizing credit access, making our customers' lives easier, and supporting economic growth across Latin America."