Meet Fondeadora, a fintech startup based in Mexico City that wants to develop a full-stack neobank. The company just raised a $14 million Series A round led by Gradient Ventures, Google’s AI-focused endeavor fund. Established in 2018, the company already handles 150,000 accounts and is adding $20 million in deposits every month.
Mexico represents a huge opportunity for an opposition bank as lots of people still depend on money for most of their transactions. Given that all nations are gradually switching to card and digital payments, it seems like the correct time to introduce Fondeadora .
Y Combinator, Scott Belsky, Noise Ventures, Fintech Collective and Ignia are likewise participating in the financing round.
“We released the very first crowdfunding platform in Mexico about ten years back,” co-founder and co-CEO Norman Müller informed me. “About 50% of card transactions stopped working in the system.”
That platform was likewise called Fondeadora. After a deal with Kickstarter, Müller and Fondeadora co-founder René Serrano returned to the drawing board and considered the issues they had while operating the crowdfunding platform. It became Fondeadora as we understand it today, an opposition bank that wishes to enhance the banking experience in Mexico.
The group traveled throughout Mexico to find a bank charter that they might utilize. “We acquired the charter, it was owned by a group of tomato farmers in Mexico. Twenty years back, the federal government provided about 10 charters to produce monetary inclusion,” Müller informed me.
The business released its banking service after that. You can open an account without visiting a branch. You then receive a Mastercard debit card. You can choose to receive notices after each lock, purchase and unlock your card, send out instantaneous transfers to other users and more. There are no month-to-month membership charge and no foreign transaction charge.
Up next, Fondeadora wishes to equalize cost savings accounts. “Cash has a fantastic UX and UI. You can touch it, you can store it in your drawer. But as a medium to produce income, it’s dreadful,” Müller informed me.
In the coming months, you’ll make interest on your deposits in your Fondeadora account. “We’re buying federal government bonds, it’s an extremely safe kind of instruments. In Mexico, you can get 5% or 6% rate of interest,” Müller stated. The start-up could assign a little part of deposits to medium-risk financial investments also.