Finerio Connect, a Mexico City-based fintech startup, has recently secured $6.5 million in funding to further develop its open finance platform. The platform aims to provide personalized financial products and services to users in Latin America. With this new injection of funds, Finerio Connect plans to expand its offerings and reach more users in the region.
Key Takeaway
Mexican fintech startup, Finerio Connect, raises $6.5 million in funding to advance its open finance platform and expand its reach in Latin America. The company focuses on providing personalized financial products and services, collaborating with financial institutions and regulators to comply with regulations and offer an enhanced personal finance experience.
Background and Vision
The co-CEOs of Finerio Connect, Nick Grassi and José Luis López, founded the company in 2018. Grassi, an American, moved to Mexico on a Fulbright Scholarship and started working at Deloitte Consulting Mexico, where he met Lopez. Together, they saw the potential in the fintech industry and the need for compliant sharing and consumption of financial data across Latin America.
A Shift towards Open Finance
After the successful launch of their automated personal finance manager, Finerio Connect gained traction in the market. In Mexico alone, the company acquired approximately 250,000 users within a year. Around the same time, Mexico introduced its fintech law, which aimed to regulate the industry and promote transparency. Sensing an opportunity, Grassi and López pivoted their business model to focus on business-to-business services, offering their technology to insurers, foreign banks, and other fintechs.
Establishing Partnerships and Expanding Reach
Currently, Finerio Connect collaborates with over 120 financial institutions and fintech companies. Last year, the company launched an API hub in partnership with Visa and OzoneAPI. The hub enables digital payments, credit services, and personal finance management, while also helping financial institutions comply with open banking regulations. In the past 18 months, usage of the API has grown by an impressive 700%, and the company plans to onboard 40 more financial institutions in the coming year.
Investment Highlights
Finerio Connect’s recent funding round was led by Third Prime, with participation from strategic investors such as Visa, Bancolombia Ventures, and Krealo. The funding will allow the company to make key hires, expand its API hub to more countries, and increase its overall user base. The company believes that the support for open banking initiatives in Latin America, combined with the large population of underserved consumers, presents a significant opportunity for growth and impact.
