Mexican fintech startup Stori becomes a unicorn with $212 million funding round
Nickie Louise
Posted On August 6, 2024
Mexican fintech startup Stori has risen to “unicorn” status after landing a $212 million round of funding, the largest announced by a Mexican startup in the past year, according to data from Crunchbase.
Stori plans to use its recent capital infusion—$105 million in capital and $107 million in debt—to introduce new products and expand its current offerings. The company is dedicated to enhancing financial inclusion in Latin America.
Stori will also use the new funding to support the launch and scale-up of both new and existing products, aiming to solidify its leading position in Mexico.
Of the total funding, Stori received an additional $50 million in debt financing from impact-focused debt capital provider Community Investment Management (CIM), the company said in a news release.
“We are very proud of our partnership with Stori, one of the most innovative and fast-growing companies in the fintech sector in Mexico,” said Jacob Haar, Managing Partner of CIM. “Stori is transforming financial services for underserved consumers in the country, and we are delighted to continue supporting their growth and success.”
In conjunction with the funding, Stori also announced a significant milestone: reaching 2 million credit card customers.
“We are thrilled to have reached 2 million customers and to be making such a positive impact on financial inclusion in Mexico. This number is significant for us because many of our customers have never been granted credit before,” said Bin Chen, CEO and Co-founder of Stori. “This new credit line from our partner, CIM, provides us with the resources to deliver on our mission to democratize access to financial products and services for the underbanked population in Latin America.”
Founded in 2019, Stori offers credit cards with limits starting at 500 pesos ($25.89) and recently introduced savings accounts with a high yield of 15%. The company also plans to offer investment services soon.
According to Condusef, the financial watchdog in Mexico, just over half of the population uses some form of financial product, such as a bank account.
Startups like Stori are increasingly targeting this untapped market, facing competition from Brazil’s Nubank and Argentina’s Uala.
Stori serves more than 3 million clients, while Nubank and Uala have recently reported 7 million and 1.5 million customers in Mexico, respectively.
