Mexican fintech firm Clip has raised US$250 million in a new round of fundraising, becoming the country’s first unicorn in the payments sector.
The latest funding round was led by Softbank and Viking Global Investors LP. The capital injection increases the company’s valuation to close to US$2 billion, according to a statement from the startup.
Founded in 2012, Clip is playing a major role in helping Mexico achieve financial inclusion. Clip’s mobile app serves as a credit and debit card reader, making it is easier for small-business owners such as shopkeepers to accept card payments.
“Tourist guides, corner stores, street vendors and other small businesses in Mexico have adopted the service as a low-cost way to accept cards,” reported Bloomberg, quoting the startup’s CEO Adolfo Babatz.
Clip’s credit card reader has become popular across the country given the relatively small number of citizens and businesses with bank accounts.
The startup has already employed more than 600 people across its offices in Mexico City, Guadalajara in Mexico and in Salt Lake City in the US. Earlier this year, Clip expanded its footprint to Argentina and is now poised to add an extra 300 people to its payroll.
“Clip is the exact type of disruptive company Softbank looks to invest in,” stated Marcelo Claure, COO of Softbank Group Corp in a press release. “Clip is using technology and AI to disrupt the financial services industry by providing essential digital solutions to merchants and small business owners.”
The previous investors in Clip include General Atlantic LLC, Goldman Sachs Group Inc., Ribbit Capital, Alta Ventures, Dalus Capital, American Express Ventures and Grupo Financiero Banorte SAB de CV.