Mexican fintech Stori becomes country’s 9th unicorn

The startup follows Mexican startups Kavak, Bitso, Clip, Merama, Incode, Konfío, Clara and Nowports as the most recent company to reach a valuation of more than $1 billion in Mexico.

The fintech, which offers a credit card to clients with no credit history, with interest rates ranging from 69% to 99%, received funding from BAI Capital, GIC and GGV Capital, along with participation from other existing and new investors, including Lightspeed Venture Partners, General Catalyst, Vision Plus Capital, Goodwater Capital and Tresalia Capital.

The funds raised in the Series C extension will be used by Stori to grow the number of clients it serves, which currently stands at 1.4 million, and to begin expanding its operations to other countries and to broaden its portfolio of financial products, Marlene Garayzar, Stori's chief governance officer, was quoted by Mexican newspaper El Economista as saying.

Stori is a non-regulated multiple purpose financial company founded in 2018 that, since early 2020 offers an international Mastercard credit card with an initial credit line ranging from 1,000 to 10,000 pesos (between $48 and $486), which grows according to the user's payment capacity and behavior.

The card is given to 95% of those who apply for it even if they do not have the best credit history or lack a history, according to the company.

"What we want is that, through access to this product, customers can have a first or second chance and that they can heal their credit history," Garayzar said.

In 2018, Stori raised a seed round for $1.5 million, and which was followed by a Series A round in 2020 for $15 million and another $32.5 million as a Series B in early 2021.

Just a few months later, in October 2021, the company raised a Series C mega-round for $200 million and is now receiving, as part of an extension of its Series C, $50 million in equity and another $100 million in debt. In total, the company has received about $400 million in financing.

Stori's card also includes an application where its customers can make payments for government services, transportation, fixed and mobile telephony, electricity, and water and gas supply.