Stori, a Mexican fintech that offers credit cards to the country’s middle class, raised $ 125 million in a Series C funding round, adding an additional $ 75 million in debt financing.
The oversubscribed 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 focused on issuing credit cards, targeting middle-income and emerging populations in Mexico.
Currently, less than 15% of the Mexican adult population has access to a credit card. That’s largely because many people don’t have strong credit histories, which Stori is tackling by using machine learning to improve underwriting. The company also introduced a full in-app experience, which means people don’t have 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 more than tenfold in the past twelve months. Over the next year, the company is committing the $ 200 million raised in Mexico to triple in size and expand its product line.
The startup isn’t the only digital player to have spotted the credit card opportunity in Mexico; The Brazilian giant Nubank has committed significant funds to develop its offer in the country, already signing millions.
Bin Chen, CEO of Stori, said, “Our mission – to foster financial inclusion for millions of hardworking people – is both incredibly meaningful and empowering. We are advancing at an unprecedented rate by combining technology, machine learning, data. a motivated subscription and an intuitive mobile-based user experience. Many more will come on our journey to become one of the leading consumer financial franchises in Latin America. ”