Narayan AmmachchiGlobal banking giant Citi made a strategic investment in Rextie, a Peruvian fintech company that provides currency exchange services. The investment is Citi’s first in Latin America’s fintech market.
Established in 2016, Rextie has grown into a major currency exchange platform in Peru. The company claims to have executed more than 1.5 million transactions worth over US$4.5 billion over the past seven years.
Citi said in a press release that Rextie expects to surpass US$7 billion dollars exchanged in the platform by the end of 2024.
Rextie’s platform provides users with access to competitive FX rates, in addition to offering a variety of other services, such as factoring solutions and business-focused payment processing.
Citi said its investment will fuel Rextie’s expansion and help the company integrate more cutting-edge technology solutions to provide more competitive currency exchange rates.
The collaboration between Citi and Rextie is a sign of how fintechs and banks can work together to reinvent and innovate financial services in the region.
Mateu Batle, CEO and co-founder of Rextie, said that the company will focus its efforts on attracting more small and medium-sized businesses, including customers involved in import and export activities.
The deal between Citi and Rextie comes in the wake of news reports that investments in Latin American tech start-ups dropped sharply by more than 50% this year.
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