Majority raises $37 million as neobank expands immigrant reach

0

Majority, a neobank targeting the U.S. immigrant market with bundled services, raised $37.5 million in a Series B funding round as it expands its physical footprint and explores new offerings, the company announced. company on Wednesday.

The digital bank, whose bundled services include an account insured by the Federal Deposit Insurance Corp. (FDIC), a debit card, remittances and international calls, received $30 million from Valar and capital of the heartas well as $7.5 million in debt financing from a U.S.-based commercial bank, the company said.

“Our plan wasn’t to fundraise at this time, but Valar, who led our lead round and the A round, made us an offer,” said Magnus Larsson, Founder and CEO of Majority. “As they say, you should fundraise when you don’t need it. In this environment, it’s great to secure a very long track. As an entrepreneur, you want to be able to do that.

Majority, which first launched its digital banking platform in 2019 to serve the large Nigerian immigrant community in Houston, also announced the opening of three new locations in Florida, as well as a new location in Houston.

Part of the digital bank’s strategy to reach its target demographic is to establish physical “meeting centers” in communities with large immigrant populations.

As part of its outreach efforts, the fintech hires local advisors who can help onboard and support users in each community.

The neobank, which declined to share its current valuation or user count, has raised $83.5 million to date.

Majority has seen monthly transaction volume quadruple over the past year among its user base, Larsson said, while overall revenue has increased fivefold.

The platform charges a monthly subscription fee of $5.99 for its services.

As the neobank seeks to attract more of the nation’s immigrant population, it has focused on solving several challenges that demographics face in accessing banking and navigating life in the United States.

The neobank announced last year that users could sign up for a majority account without a Social Security number or US documentation. Applicants only need a government-issued international ID and proof of US residency to open an account on the platform.

Larsson said the neobank has partnered with Alloy on the identity verification front.

Fintech last year too published its migrant handbookan online resource to help immigrants navigate life in the United States by providing information on banking, health care, taxes, and housing.

As Majority seeks to expand its services, Larsson said he is aware of the prevalence of “predatory” payday lenders in the United States and is examining ways in which fintech can provide credit and debt solutions. ready.

“The credit system in this country needs development, in my eyes,” he said. “Our consumers and the communities we work with need good credit solutions that are fair and reasonable.”

Share.

About Author

Comments are closed.