Belvo, a Latin American fintech startup founded just 12 months ago, has already funded two of the biggest names in North and South American venture capital.
The company is striving to expand the reach of its service, which connects mobile applications in Mexico and Colombia with a customer's banking information, and now has some deeply invested investors to support its efforts.
If you find the business model familiar, it is because it is. Belvo borrows a page from the plaid playbook. This strategy ultimately earned the U.S. startup and its investors $ 5.3 billion when it was acquired by Visa in January this year.
Belvo and his supporters, who have invested $ 10 million in the one-year company, want to repeat Plaid's success and open a whole new line of financial services companies in Latin America.
The round was jointly led by the Silicon Valley Founders Fund and the Argentine Kaszek. With the new arsenal of capital, which is complemented by the founder fund network, and Kaszek's deep knowledge of the Latin American market, Belvo hopes to triple its current 25-strong team, which is spread across its operations in Mexico City and Barcelona.
Since its creation in May 2019, the company has raised a total of $ 13 million from Y Combinator (W20) along with some of the largest players in the Latin American startup scene. These investors include David Velez, co-founder of the multi-billion dollar Brazilian startup Nubank; MAYA Capital and Venture Friends.
The company's co-founders, Pablo Viguera and Oriol Tintoré, are no stranger to startups themselves. Viguera was COO for the European Payment App Verse and was formerly General Manager of one of the major European neo-banks, Revolut. Tintoré is a former NASA aerospace engineer and founded Capella Space, an information collection startup that raised over $ 50 million while working for his Stanford MBA.
The company aims to work with leading fintechs in Latin America that span industries such as neo-banks, credit providers and personal finance products that Latin Americans use every day.
Belvo has developed an API platform that allows developers to access and interpret the end user Financial data to build better, more efficient, and more inclusive financial products in Latin America. Use developers of popular neobank apps, loan providers and personal financial instruments Belvo's API for connecting bank accounts to their apps to unlock the power of open banking.
According to Viguera, the capital will be used to open a new office in Sao Paulo and invest in new employees for product and business development. In particular, Belvo is only one year old, was founded in January 2020 and operates in Mexico and Colombia.
Belvo's recent funding is also another example of a US and Latin American investment team for a Latin American company.
Nuvocargo, a logistics start-up that aims to strengthen the Mexico-United States trade track with its freight technology, recently started a round led by Mexico's ALLVP and NFX from Silicon Valley. American investors may recognize the possibility of a co-investment to invest capital in startups that serve the Latin American market in partnership with successful New Wave domestic funds such as the Mexican ALLVP and the Argentinian Kaszek.