Stori Reaches Unicorn Status with $50 Million Equity Round
A company looking to bring credit availability to consumers in Latin America is now Mexico’s newest “unicorn.” Stori has announced that it’s raised $150 in funding. This includes a $50 million Series C-2 led by BAI Capital, GIC, and GGV Capital with participation from Lightspeed Venture Partners, General Catalyst, Vision Plus Capital, Goodwater Capital, Tresalia Capital, and Davidson Kempner Capital Management LP. The other $100 million is a debt facility arranged by Davidson Kempner. To date, the company has now raised $399 million, including a $125 million equity round in November of last year.
Notably, the equity portion of the round was raised at a valuation of $1.2 billion, thus securing the company “unicorn” status. With the newly-acquired funds, Stori says it plans to grow its team and expand its product line-up beyond credit cards. Additionally, the firm plans to launch its offerings in other Latin American markets.
Stori is a Mexico-based FinTech that aims to expand credit card access for underserved populations. Customers can open a credit card with Stori regardless of whether they have bad credit or no credit history. Then, the card will increase its credit limit every three months as customers establish payment history. According to the company, it now has more than 1.4 million users in Mexico since launching in 2018.
Announcing the latest funding, Stori co-founder and CEO Bin Chen said in a statement, “This new round of investment is a significant milestone and takes us one step closer towards our vision of changing the lives of millions who are currently underserved by traditional financial institutions. By addressing key pain points of our customers with a simple and mobile-first experience, we hope to play a major role in democratizing credit access, making our customers’ lives easier, and supporting economic growth across Latin America.”
Meanwhile, BAI Capital founder partner Annabelle Long said of the FinTech, “Stori’s ability to raise this round during a time of economic uncertainty demonstrates the confidence of investors in Stori and its mission. Stori stands out from its competitors with its strong team, disciplined execution, and unparalleled capacity to serve the underbanked populations.”
Clearly Stori’s Series C-2 with its $1 billion+ valuation marks a major milestone for the company. However, with the FinTech setting a goal of serving 100 million customers, there could well be many other milestones ahead. Of course, there’s a long way between its current 1.4 million and that nine-figure target. Still, with its latest funding raise and expansion plans, Stori seems to be headed for big things.