Nine months after raising a Series A round, Majority has raised tens of millions in equity and debt funding for its mobile bank for migrants. The fintech today announced that it has raised $37.5 million in Series B, including $30 million in equity funding led by Valar Enterprises and other existing investors, and the remaining $7.5 million in debt financing from an undisclosed U.S. commercial bank.
In just over a year, Majority has raised a $19 million seed, a $27 million Series A and now a $37.5 million Series B. Still, today’s round — mostly fueled by existing investors — looks a little different, according to CEO and co-founder Magnus Larson.
“We hadn’t planned to relaunch now,” he said. “Getting an offer to take a ride when everything is fragile and giving you the freedom to just focus on what you want to do makes it a pretty easy choice.” The founder pointed out that tons of companies have had to downsize in recent months, a reshuffle that could help Majority build a better team in the future.
The majority earn money through a membership fee of $5.99 per month. It offers bank accounts, debit card, community discounts, free international money transfer and discounted international calls. The company did not share revenue details, other than noting that revenue grew 5x and monthly transaction value grew 4x in the past year.
“One of our conclusions was that we’re building a product that people want, that people are willing to pay for,” he said.
Creating an immigrant-focused service is as much in demand as it is difficult. The startup has swathes of well-funded competition, including – but not limited to – Fair, TomoCredit, and Welcome. Unlike Welcome, which initially focuses only on the Hispanic community in the United States, Majority focuses on all migrants.
Additionally, access for the unbanked remains a difficult area to disrupt. Earlier this year, Majority announced that users can create an account without needing a Social Security number or US documents, and instead use an international government-issued ID and proof of residency. in the United States — a move the startup says could make its services more accessible.
“We’re building a digital product that solves a very analog or offline problem today, from buying to sending money,” he said.
The financial services startup has opened physical locations across Florida, in Miami, Hialeah and Orlando, and in Houston, Texas. Locations help the team connect with the communities they serve. Creating physical spaces has helped the majority gain consumer trust, Larsson explained, showing that the company won’t just show up, handle the cash, and disappear in a few weeks due to volatility. startups. It’s a different playbook to how traditional banks respond to the wave of financial innovation; many traditional banks are closing physical locations and branches. “When you handle people’s money, they want to know you’re real,” he added.