API startup Fintoc has officially raised $7 million in Series A funding as it aims to turn Mexico (a part of the LaTAM market) into it’s main market by consolidating its presence in its home country of Chile and in Mexico, according to TechCrunch.
The company expanded into Mexico one year ago.
Fintoc CEO Cristóbal Griffero said that he expects the existing issues in Latin America and Mexico, regarding banking and aspects of banking tech, to be addressed but stressed that it will take time – “If we are there right before this boom, we’ll be able to grow with the market.”
Fintoc has also evolved from their initial messaging that said they were building “Plaid for LatAm.”
“I believe that the funds are still here, only that their thesis has changed a little. Now you have to explain very well why [you’d go into] each country. Saying “I am X for LatAm” is no longer something appealing to investors, especially those in San Francisco, because Latin America is super fragmented and suddenly it doesn’t make sense to be in every country. So maybe it’s Mexico, Chile and one other country, not Brazil or not Colombia; not “we are going to do all of Latin America because we are close.”
“Mexico is the market we will most care about in the next two years and we expect it will represent the bulk of Fintoc’s revenue within the next two years” Griffero said.
“The closer we get to the payment rails, the better payment experience we can offer,” Griffero said in a statement.
