(Bloomberg) – Chilean fintech Global66 is taking advantage of the massive amount of remittances and money transfers circulating in Latin America, in the hope that a new wave of products will give it an edge over a host of competitors.
The startup, which employs 200 people in eight countries, plans to use its latest round of funding to promote a new application through which customers can send money instantly between their platform accounts at low cost, it explained in a the founder and CEO of the company, Tomás Bercovich, interviews. It already allows clients to transfer funds between commercial bank accounts.
Global66 wants to get a slice of the gigantic market. In June alone, Mexicans working abroad sent home US $ 4.44 billion, 26% more than the previous year, according to the Bank of Mexico. Remittances to Colombia also grew 25% year-on-year in June. But the competition is tough: searching for the words “send money” in the Google Play store brings up 249 different applications.
“I’m not worried about competing with other fintechs for funding or for clients,” Bercovich said, referring to the broader market for new financial services. “I think the issue is that there is little competition in Latin America.”
Global66 targets low- and middle-income segments and small businesses in countries like Mexico, Peru, Argentina and Colombia, where many people remain marginalized from the banking system.
High net worth individuals “have access to executives who can help them get good rates to send money abroad,” Bercovich noted. “What happens with people with less wealth and SMEs is that everything is more complex.”
Global66 raised $ 12 million in a Stage A financing round in July, which was led by Quona Capital and featured participation from Magma Partners, Venrex Investment Management, Clocktower Technology Ventures and other investors. In total, the company has raised $ 20 million since its founding in 2018.
Part of this money will be used to launch its own prepaid card in Chile and it is working to do the same in Colombia. In the coming months, Global66 also plans to offer a multi-currency electronic wallet.
The company is already growing rapidly, having transferred about US $ 400 million so far in 2021, five times more than in the first half of 2020. Its goal is to reach US $ 1 billion by the end of the year.