Klat raises USD 70 mln

General Atlantic doubled down on Klar, leading its latest financing in addition to its USD 70 million Series B last July. Prosus Ventures, Quona Capital, Mouro, IFC, Acrew and Endeavor Catalyst also participated in the round. WTI provided USD 20 million in venture debt, Möller said. In total, the company has raised over USD 150 million in equity funding since its 2019 inception.

Klar offers what it describes as a ‘100% digital, transparent, free, and secure alternative to traditional credit and debit services.’ The startup claims that users can open an account online in five minutes through its app. No minimum balance is required, and users are charged no fees. The company’s card – powered by Mastercard – offers users cash back on all their purchases and allows them to make mobile payments and access Buy Now, Pay Later services. Users can get an advance on their salaries through direct deposit.

Also, Klar offers credit lines up to USD 20,000 without referencing the users’ credit bureau score.Klar has three sources of revenue: interchange fees, interest, and float income, which is money it generates off users’ deposits.

According to TechCrunch, the startup may explore expanding into adjacent segments. It also is looking to improve its credit offering, of which about 25% of its users are micro entrepreneurs. It’s also looking for M&A opportunities. As for geographic expansion, Klar is squarely focused on Mexico. It also plans to use its new capital to build more products such as different borrowing ones to complement what Klar currently offers and investment offerings.

Presently, Klar has about 400 employees spread around two main hubs in Mexico and Berlin.