Mexican fintech Stori becomes unicorn after US$150mn round

Mexican fintech Stori has raised a further US$150mn in Series C funding, taking its valuation to US$1.2bn and making it a unicorn for the first time.

The fintech, which focuses on increasing financial inclusion within Mexico’s finance system, has raised US$100mn in debt financing and US$50mn in equity funding from BAI Capital, GIC and GGV Capital along with other investors. It follows a US$125mn Series C round last November, which at the time was one of Latin America’s largest Series C rounds. The company, which was founded in 2018, has raised approximately US$400mn to date.

Stori is taking advantage of the rising use of smartphones to tackle a lack of financial inclusion within Mexico, with more than 60% of Mexicans now owning a smartphone. The company gives consumers access to credit card products along with the opportunity to build up their credit history, with all parts of the journey being carried out through the mobile app.

Stori will use the latest investment to grow its team and extend its product offering beyond the Stori credit card, with ambitions to serve 100mn consumers across Latin America.

‘Unlocking opportunities’ through better financial access

Stori CEO and Co-founder Bin Chen says: "This new round of investment is a significant milestone and takes us one step closer towards our vision of changing the lives of millions who are currently underserved by traditional financial institutions. By addressing key pain points of our customers with a simple and mobile-first experience, we hope to play a major role in democratising credit access, making our customers' lives easier, and supporting economic growth across Latin America."

Marlene Garayzar, Chief Governance Officer and Co-founder at Stori, continues: "We are proud to bring financial inclusion to more than 1.4mn customers in Mexico. This important milestone could not have been possible without our incredible teams in Mexico, the US, and Asia, and to all our customers who embraced our brand and product. We firmly believe that everyone deserves the opportunities credit and other financial tools can unlock."

Stori joins illustrious company as the latest unicorn in Mexico’s emerging fintech ecosystem. Others include digital banking fintech Konfio, digital payments company Clip and crypto platform Bitso. In helping to secure Stori’s path to unicorn status, Garayzar also becomes the first Mexican woman to have founded a tech unicorn in her home country.

Latest raise a vote of confidence in Stori and its founders

"Stori's ability to raise this round during a time of economic uncertainty demonstrates the confidence of investors in Stori and its mission," says Annabelle Long, Founding Partner at BAI Capital. "Stori stands out from its competitors with its strong team, disciplined execution, and unparalleled capacity to serve the underbanked populations."

And Hans Tung, Managing Partner at GGV Capital, adds: "The Stori team is a rare combination of industry background, hustle and change-the-world attitude. The market demand for inclusive financial products tuned for local markets is clear, and the results are not surprising. We continue to be excited about partnering with the Stori team as they grow across Latin America.”