Mexican challenger bank Fondeadora adds $14 million to its Series A – TechCrunch

Fondora, A fintech startup based in Mexico City and building a challenging bank, has extended its Series A funding round. I covered the company’s original round Back in august 2020. And now, Fondeadora is adding $ 14 million on top of the original $ 14 million it had already raised – it now represents a $ 28 million funding round.

Portag 3 Investing in expansion. The company’s current investors are investing more money in Fondera, Google’s Gradient Ventures. Gokul Rajaram and Anatol von Hain are also investing as trade ambassadors.

As a reminder, Y Combinator, Scott Belsky, Sound Ventures, Fintech Collective and Ignaya also participated in the first installment of Series A.

“We received an unwanted and unexpected term sheet three months after our Series A,” co-founder and co-CEO Norman Muel told me. With the expansion, the valuation of the company has doubled.

Image Credit: Fondora

As most people still rely heavily on cash in Mexico, creating a challenging bank represents a good opportunity. In addition to customers of legacy banks, Fondeadora may become the first bank account for many.

Fondeadora does not operate any branch for its banking service. When you create an account, you receive a MasterCard debit card a few days later. There is no monthly membership fee and no foreign transaction fees.

Like other Challenger banks, your balance gets updated instantly. You can choose to receive push notifications for transactions. You can also lock and unlock your card from the app.

Recently, the company launched a card without any personal information or card number – a little bit , Apple card On the back of the card in the US, you can find a QR code. In this way, you can show your card to your friends. They scan the code and you get the money after a few seconds.

Venmo launched Credit Card with a QR Code Even in America. I think challenging banks and peer-to-peer payment apps around the world should do it all because it is a big bridge between the physical world and the app.

Fondorada secured a bank charter and now has a lot of money in her bank account. Things seem to be working well so far and prove once again that banking is not a global industry. There is room for a lot of local players around the world.