In a significant development for the fintech landscape of Latin America, Belvo has announced the completion of a $15 million funding round. This strategic infusion of capital is aimed at accelerating the company’s efforts in product development within Open Finance, specifically in the realms of data and payment innovations.
The latest round saw participation from both new and existing investors, including Quona Capital, which has focused on fintech opportunities in emerging markets, alongside notable backers like Kaszek, Kibo Ventures, Future Positive, Citi Ventures, and Y Combinator. With this fresh capital, Belvo is poised to enhance its AI strategy, which is vital for scaling its financial services across the region.
"We are thrilled to announce that we have raised $15 million in new funding! This round sees Quona Capital join our mission as a new investor," said Belvo's representative. They expressed gratitude for the support offered by returning investors and emphasized the importance of this funding in driving Belvo’s ongoing expansion.
Belvo’s commitment to democratizing financial services in Latin America is clear. "Our mission remains clear: to democratize access to financial services in Latin America by powering more inclusive and personalized offerings for millions of individuals and businesses," articulated the spokesperson.
The trajectory of Open Finance in Latin America is evolving rapidly, transitioning from vision to reality over the past few years. This investment not only highlights Belvo's pivotal role in this transformation but also demonstrates the momentum behind the Open Finance movement. "What was once a vision when Belvo got started in 2019 is now a structural shift transforming the financial landscape," they added.
Being established as a leading Open Finance platform, Belvo has built a reputation based on trust and substantial results. The company now caters to over 150 clients, including major financial institutions like BBVA, Banamex, Bradesco, and Mercado Libre. This network of partnerships is a testament to Belvo's ability to deliver secure, effective financial solutions.
Belvo's operational metrics speak volumes about its success and reach. Currently, the platform processes nearly 2 million account-to-account transactions every month, translating to an impressive annualized Total Payment Volume exceeding $500 million. Moreover, over 50 million individuals and businesses have connected their accounts through applications powered by Belvo.
The platform is continuously enabling financial innovators to craft sophisticated credit models and improve user experiences. For example, by leveraging real-time transactional data, lenders are now able to offer fairer credit options, successfully reaching underserved segments. "Mercado Libre uses Belvo’s employment data to increase credit lines by 20% in Mexico," shared a Belvo representative, highlighting the impact of their technology.
Additionally, efficiency in onboarding and credit decisions is markedly improving across the region. For instance, Facio in Brazil has successfully reduced credit risk by half through the use of Belvo’s data aggregation services. On the payments front, advancements in Open Finance are facilitating faster and more secure transactions, as illustrated by Rayo, which has improved its collection rates by 20% by utilizing Belvo’s Direct Debit product.
These examples underscore the transformative potential of Open Finance in boosting financial inclusion. Since 2019, the number of digitally banked individuals in Brazil and Mexico has more than doubled, a trend that is reflective of Belvo’s contributions to the sector.
Looking ahead, the new capital will enable Belvo to intensify its focus on innovation. "We will continue to invest heavily in AI, transforming fragmented financial data into structured insights for applications like underwriting, user segmentation, and payment acceptance," stated the Belvo representative.
Moreover, the company aims to improve payment solutions significantly, with plans to introduce highly-anticipated products like Pix Automático and enhance existing offerings such as Biometric Pix in Brazil and Direct Debit in Mexico. Through these initiatives, Belvo is set to provide cost-effective and rapid account-to-account payment experiences, driving further growth in this promising sector.
As Belvo prepares to leverage this funding for growth, the future of Open Finance in Latin America appears increasingly optimistic. The investment enables the platform not just to respond to the current market demand but also to shape the financial ecosystem to be more inclusive, efficient, and innovative.