About 90% of Mexicans lack a credit card and 50% lack a bank account, according to the World Bank. These staggering statistics underscore the critical need for the country's credit market to be tended to – a transformative endeavor that Mexican fintech startup Klar is looking to spearhead.
With a strategy dedicated to democratising access to credit, Klar has secured a $100 million debt facility from investment firm Victory Park Capital.
Klar's mission revolves around providing a comprehensive and inclusive range of credit solutions for Mexicans. This encompasses diverse offerings such as credit cards with cashback benefits, "buy now, pay later" (BNPL) services, salary advances, and loans.
Currently serving approximately 2.4 million clients with payment services, investment accounts, and loans, Klar aims to expand its user base through strategic utilization of the newly acquired funds.
According to CEO Stefan Moller, "This financial boost will enable us to enhance our offerings to users, whether by extending higher credit limits or reducing interest rates."
Presently, Klar provides credit lines ranging from 1,000 pesos ($58.67) to 30,000 pesos ($1,760.24), but it intends to explore possibilities for experimentation, possibly reaching up to 40,000 pesos.
Building upon its earlier achievement of raising $70 million in equity funding through a General Atlantic-led Series C round last June at a valuation of $500 million, the Mexico City-based digital bank is now poised for further growth.
Klar plans to expand its loan portfolio with the new funding, a critical endeavor in a nation where credit availability remains limited for many citizens.