This fund-raising marks one of the biggest ever for a financial company in Mexico. Klar is not just another bank. Founded in 2019, Klar's mission is to make finance simpler, more accessible and more transparent for Mexicans. Even today, almost half of the adult population in Mexico does not have a bank account. For many, opening an account, applying for credit or managing their money remains a long and complicated process. Mexico has just 14 branches for every 100,000 adults, compared with around 30 in most other Western countries. What's more, opening a traditional bank account often requires the provision of documents that many do not have (proof of address, formal income, valid ID). This de facto excludes informal workers, who account for over 50% of total employment in Mexico. This is where Klar makes the difference. From its mobile app, users can open an account in minutes, apply for a credit card, get a loan or even invest their money, without visiting a branch or facing a mountain of paperwork. As a result, over 2 million people already use Klar (i.e. over 1.5% of the population), seduced by its simplicity and efficiency. Bank 2.0 isn't just growing in user numbers. It is also generating solid revenues, with sales of $300 million a year.
The funds raised will be used to enhance existing products, such as the Mastercard cashback card, which allows users to recoup a portion of their spending on each purchase. Klar also plans to leverage artificial intelligence to analyze profiles and make faster decisions. With the support of General Atlantic, Klar will strengthen its mobile application, which already serves as the main account for millions of customers. At the same time, it is actively preparing to obtain a full banking license, so as to be able to offer the widest possible range of services, such as interest-bearing savings and international transfers.
