LAVCA VC
  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • #changetheratio
  • Engage
    • VC Council
    • VC Members
  • LAVCA
  • Member Login
  • Member Access

LAVCA VC

  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • #changetheratio
  • Engage
    • VC Council
    • VC Members
  • LAVCA

American Express Backs Mexican Fintech Startup Clip As Emerging Markets Warm To Financial Startups

December 7, 2015

(Tech Crunch) Investment in new financial technologies is exploding globally, and as traditional players look for opportunities they’re increasingly turning their attention to technology companies in emerging markets.

The latest company to benefit from the newfound attention on technologies to facilitate payments and credit and debit card adoption in emerging markets is the Mexican startup, Clip, which raised $8 million in a Series A round (one of the largest in the country’s largest early-stage investments).

Launched in 2013 by two former PayPal employees, Adolfo Babatz and Vilash Poovala, Clip is aiming to be the Mexican equivalent of Square, with a mobile payment service that allows small merchants to accept credit and debit cards — and online payments.

The company has its roots in work that the two co-founders were doing at PayPal. “We were very bad at selling this internally about how big this could become,” Adolfo says. “Nine months later Square came out.”

Based in Mexico City, but with developers and engineers in Menlo Park, Calif., Clip is trying to stay true to its California roots while it explores what Adolfo says is a massive opportunity in the Mexican market.

The company estimates that there are 11 million businesses that could potentially use Clip’s payment services, and unlike the U.S. where penetration rates for card payment systems is at roughly 50 percent, in Mexico that number looks more like 9 percent.

So there’s nothing but room to grow, according to Babatz, in a market where the only competitors are the Stockholm-based payment technology company iZettle, and cold, hard cash.

Clip’s launch comes as interest in financial technology companies has reached a fever pitch. Last year, investment in financial technologies reached $12.21 billion globally, and international investors began spending some of that money outside of their home countries.

Nigerian mobile money company, Paga, raised funds from a syndicate including Adlevo Capital and the Capricorn Investment Group.

Clip’s first partner is American Express, which represents 30 percent of the total payment volume in Mexico, but only has 3 million of the roughly 30 million credit and debit cards in use in the country.

Now, there are contracts with American Express, Banorte, Banamex and Bancomed, says Babatz.

It’s that kind of traction that led to the company’s $8 million A round led by the Mexican venture capital firm Alta Ventures, with participation from Amex Ventures, Sierra Ventures, Endeavor Catalyst (the investment arm of the entrepreneurial focused support organization, Endeavor). Mexican investors in the round included Fondo de Fondos, Angel Ventures Mexico.

Angel investors like Karl Mehta, a serial entrepreneur and the founder of Playspan, also have backed the company.

For startups in Mexico, the fact that a company like Clip can generate multinational interest is the latest indicator that the fortunes for tech companies in the country may be changing.

“In the last few years there has been an explosion of funds and companies,” says Babatz. “And all of the basic building blocks for entrepreneurs are getting better.”

American Express Backs Mexican Fintech Startup Clip As Emerging Markets Warm To Financial Startups was last modified: July 26th, 2016 by Editor
Adolfo BabatzAlta VenturesAmerican ExpressAmex VenturesAngel Ventures MexicoClipEmerging MarketsEndeavor CatalystFintechFondo de FondosMexicoPayPalSierra Ventures
0
Facebook Twitter Google +

Submit VC News

Have private equity or venture capital related news that you would like to share? Submit your press releases and news to news@lavca.org.

Categories

  • Deals
  • Exits
  • Regulatory
  • M&A
  • New Funds & Firms
  • Partnerships

Sector Tags

agribusiness AgTech Artificial Intelligence B2B Big Data biotech Consumer/Retail delivery Digital Media & Entertainment e-commerce ecommerce EdTech Education Energy Financial Services fintech foodtech Healthcare Healthtech HRTECH Human Resources Impact Impact Investing Infrastructure InsurTech IoT IT Logistics & Distribution logistics and distribution marketplace Marketplaces Mobile Private Capital Private Equity Proptech Real Assets Real Estate SaaS Software Startup startups Technology Telecommunications Transportation venture capital

Geography Tags

Alquilando Argentina Argentine Austria Belize Bolivia Brasil Brazil Canada Canary Caribbean Central America Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras India International INTL Israel Jamaica Japan Kenya LatAm Latin America Mexico Miami Nicaragua Pan-Regional Panama Paraguay Peru Portugal Puerto Rico South Korea Spain United States Uruguay US USA Venezuela
LatAm Venture Bulletin

LatAm Venture Bulletin

The LatAm Venture Bulletin is a must-read roundup of startup deals and news on emerging technologies in Latin America, delivered to over 6,000+ investors, entrepreneurs, and corporates bi-weekly.
Asset Class *

Tweets

  • 📢Exciting news to kick off 2021: Nicolás Szekasy of @KaszekVentures was appointed LAVCA Board Chair; Juan Alberto L… https://t.co/k6xlZQ0GKi

    21-Jan-2021

    Reply Retweet Favorite
  • READ latest deal case featuring Aqua Capital's investment in 🇧🇷Brazil-based agribusiness/animal feed additives comp… https://t.co/vAgqJSEPRm

    22-Dec-2020

    Reply Retweet Favorite
  • 🚀LAVCA's #VC #femaleinvestors lists are out: ♀️ Top #Women Investing &⭐Emerging Women Investors in #LatinAmerica… https://t.co/D6bpZqL9LO

    10-Dec-2020

    Reply Retweet Favorite
  • #HappeningNow LAVCA's CEO @ivonnecuello sharing #LatAm #Tech sectors leading, #leapfrogging, & #Socialimpact data.… https://t.co/Bt2sgRQOFm

    11-Nov-2020

    Reply Retweet Favorite
  • 👩‍💻#weXchange2020 LAVCA's Executive Advisor y @CapriaVC 's Venture Partner @RoblesSusanaro y @NXTPvc's Managing Par… https://t.co/F7Fm1EOxZO

    11-Nov-2020

    Reply Retweet Favorite

Keep in touch

Twitter Linkedin Youtube

About LAVCA

 

LAVCA is the Association for Private Capital Investment in Latin America, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean through research, education, networking and advocacy.

LAVCA Offices

    New York City:
    589 8th Ave, 18th Floor
    New York, NY 10018

    Washington DC:
     2600 Virginia Ave. N.W., 500
    Washington, DC 20037

LAVCA Also Has a Regional Presence in:

    Silicon Valley:
    San Francisco, CA

Explore LAVCA.org

  • About LAVCA
  • Board, Team & Councils
  • Media
  • Contact Us
  • Membership Benefits
  • Members Only Access
  • Education and Programs
  • Research
  • Policy
  • LAVCA VC
  • Contact Us

@2020 - LAVCA. All Rights Reserved.


Back To Top