Prosus half-year results for the six months ended 30 September 2020. Learn more here.
back to news overview

Klar announces US$15M Series A to democratize financial services in Mexico

20 October 2020

Klar announces US$15M Series A to democratize financial services in Mexico MEXICO CITY October 2020. Klar is a 100% digital, transparent, free and secure alternative to traditional debit and credit services in Mexico.

Klar, a leading challenger bank in Mexico, closed on US$15 million in Series A funding led by Prosus Ventures (formerly Naspers Ventures) with participation from new investor International Finance Corporation and former investors Quona capital, who led Klar´s SEED round, Mouro Capital (formerly Santander Innoventures) and aCrew. The round brings the total debt and equity funds raised to approximately $72 million since the company was founded in 2019.

“Prosus Ventures partners with entrepreneurs that are solving big societal problems with technology, in a uniquely local way. We invest in sectors of the economy where technology can lead to meaningful change in the lives of consumers. Klar has identified a massive need in the Mexican financial market and brings a unique solution through their credit and debit offering," said Banafsheh Fathieh from Prosus Ventures. "In less than a year, the team has shown an ability to build a world-class digital bank for the masses, one focused on financial access and inclusion. We are very excited to partner with them on that mission."

Aging, archaic architecture has made it difficult for traditional banks to serve the needs of the growing middle class in Mexico - with a mere 10 percent of adults in the country owning credit cards(1). “We’ve built a new banking infrastructure core that aligns with the financial needs of consumers and allows us to service a massive segment of the population in Mexico that has previously been left behind when it comes to financial services.” said Stefan Moller, Klar’s co-founder and CEO. Klar’s significantly lower cost of technology is what allows it to offer premium products to segments under- or un-served by traditional banks.

Alongside Prosus Ventures, IFC joined the round. According to Leila Search, of IFC’s FinTech Investments Group, "Since more than half of Mexicans don’t have a basic bank account, financial access is going to be the main battle for Mexico over the coming years.  We know Klar will be an inspiring contributor to it.”

The funds will be put to use to grow Klar’s engineering capabilities in both its Berlin and Mexico hubs in order to expand the company’s product suite to help users manage their liquidity with simple, transparent and affordable credit products.

“Klar is making credit accessible to all Mexicans, including those with no credit history,” explains Daniel Autrique, Klar’s co-founder and CFO. “We help people build credit by looking at how and where they spend their money, instead of being stuck with traditional credit scores that are backward looking and obsolete.”

Klar’s business has experienced rapid growth having issued over 25,000 credit lines amongst its 200,000 customers in less than 12 months since inception. Moreover, the business has shown significant resiliency to the Covid-19 crisis, as growth has tripled during the pandemic. 
 
About Klar
Klar has been working to democratize financial services in Mexico since 2019 by offering a 100% digital, transparent, free and secure alternative to traditional credit and debit services.  Unlike traditional financial institutions, Klar provides consumers with a unique set of features and benefits, including:
  • Simplicity: consumers can open an account online in 5 minutes through the Klar app.
  • Zero Costs: Klar requires no minimum balance and charges no fees.
  • Cashback: Klar rewards consumers with 1- 4%, it is the only debit account in Mexico giving cashback.
  • Control: consumer cards are linked to the Klar app, where deposits and expenses are visible, money can be sent and received instantly, and payments can be made in real-time. Consumer cards can easily be locked and unlocked as needed.
  • Easy to Understand Credit Terms: Klar breaks down principal and interest into installments that are easy to understand and manage
  • Fair Credit Assessment: Klar assesses creditworthiness from your account history, not through a credit bureau
  • Security: Klar is powered by Mastercard, Banco de Mexico and protected by the highest standards in the industry
For more information visit: https://www.klar.mx/

About Prosus
Prosus is a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.
 
The group is focused on building meaningful businesses in the online classifieds, payments and fintech, and food delivery sectors in markets including India, Russia and Brazil. Through its ventures team investments, in areas including edtech and health, Prosus actively seeks new opportunities to partner with exceptional entrepreneurs who are using technology to address big societal needs.
 
Every day, millions of people use the products and services of companies that Prosus has invested in, acquired or built, including Avito, Brainly, BYJU’S, Codecademy, ElasticRun, eMAG, Eruditus, Honor, iFood, LazyPay, letgo, Meesho, Movile, OLX, PayU, Red Dot Payments, Remitly, SimilarWeb, Shipper, SoloLearn, Swiggy, and Udemy.
 
Similarly, hundreds of millions of people have made the platforms of its associates a part of their daily lives: Tencent (www.tencent.com; SEHK 00700), Mail.ru (www.corp.mail.ru; LSE: MAIL), Ctrip.com International Limited (“Ctrip”) (NASDAQ: CTRP), and DeliveryHero (www.deliveryhero.com; Xetra: DHER).
 
Today, Prosus companies and associates help improve the lives of around a fifth of the world’s population.
 
Prosus has a primary listing on Euronext Amsterdam (AEX:PRX) and a secondary listing on the Johannesburg Stock Exchange (XJSE:PRX), and is majority owned by Naspers.
 
For more information, please visit www.prosus.com
 
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

For more information, visit www.ifc.org.

(1) Source: Statista, share of adult population with credit cards in Mexico between 2011 and 2017, by age group.

Share this story