Majority, a mobile bank for migrants, closes third funding round in just over a year

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 announced today that it has raised $37.5 million in Series B, including $30 million in equity funding led by Valar Ventures and other existing investors, and the $7.5 million in remaining dollars in debt financing from an undisclosed US commercial bank. p>

In just over a year, Majority has raised a $19 million, $27 million Series A seed and now a $37.5 million Series B round. Yet today's cycle - mostly fueled by existing investors - looks a little different, according to CEO and co-founder Magnus Larsson.

"We hadn't planned to raise 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 over the past few months, a reshuffle that could help Majority build a better team in the future.

The majority make money from a $5.99 per month membership fee. It offers bank accounts, debit card, community discounts, free international money transfer and discounted international calls. The company hasn't shared any revenue details other than that revenue has increased 5x and monthly transaction value has increased 4x in the past year.

"One of our conclusions was that we are designing a product that people want, that people are willing to pay for," he said.

Building an immigrant-focused service is as demanding as it is challenging. 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 a government-issued international ID and proof of residency. in the United States — a move the startup says could make its services more accessible.

"We are creating 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 offices across Florida, in Miami, Hialeah, and Orlando, as well as 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're dealing with people's money, they want to know you're real," he added.