Financial technology investing is increasing globally, and traditional players are now turning their attention to investment opportunities in new fintech startup companies.
Clip, a Mexican fintech startup, is the latest company to benefit from the increasing attention fintech companies are getting. It recently raised $8 million through Series A funding round – being one of the biggest early state investments in the country. The company was established in 2013 by Vilash Poovala and Adolfo Babatz, former employees of PayPal. Clip is a Mexico City-based company even though its engineers and developers are based in California. The company is trying to maintain its true California roots while at the same time, scoping the immense market opportunities in Mexico. Its main aim is to be comparable to Square, but in Mexico; with an online payments systems and a mobile payment service which allows small businesses to accept payments through debit and credit cards.
According to the firm’s estimates, there are about 11 million businesses that have the potential of using the company’s payment services. The card payment systems’ assimilation rates in the U.S. and Mexico are about 50 and 9 percent respectively. This demonstrates the huge potential growth of card payment systems in Mexico, which Clip hopes to fully explore .
The launch of Clip came at a time when interest in fintech companies was creating great tidal waves. In 2014, global investments in fintech companies reached $12.21 billion. Many international investors also started putting their money in companies in foreign countries.
The company’s $8 million Series A funding round was led by Alta Ventures. Other participants included Amex Ventures, Endeavor Catalyst and Sierra Ventures. Mexican investors included Angel Ventures Mexico and Fondo de Fondos. The company has also received backing from Karl Mehta, an unfailing entrepreneur and founder of Playspan.
The kind of multinational interest that the company has generated is paving the way for a better financial future for other Mexican fintech startups. A promise that will be realized once the available opportunities are effectively utilized.