Sequoia Capital Leads $39 Million Round To Back Chilean Fintech Startup Industry 

In a recent round headed by Sequoia Capital, the Chilean fintech company Fintual announced a $39 million investment.

Kaszek, ALLVP, and Y Combinator are additional investment vehicles that have previously backed Fintual. Fintech has so far garnered a total of $57 million in financing.

Asset management Fintual provides a variety of financial services, mostly savings, and investments. It is the only business of its kind in Chile and Mexico that offers fully digital customer onboarding. Both nations have regulations governing Fintual.

In June, Final raised $15 million from Kaszek, who joined previous initial investors Y Combinator, ALLVP, and Oskar Hjertonsson from Cornershop by Uber. 

A month later, Fintual made the announcement that it had paid an undisclosed sum to acquire the Mexican fund distributor Invermerica, making it one of the select few businesses permitted by Mexico’s National Banking and Securities Commission (CNBV) to conduct non-face-to-face onboarding or digital registration of its clients.

With the use of passive investments, primarily exchange-traded funds, Fintual manages $665 million in assets for more than 70,000 clients. Each fund’s algorithms and a small team of investment managers frequently examine the weighting of the ETFs in the fund.

In the next three to four months, Fintual should handle $1 billion in assets in Chile and Mexico, and by the end of the year, it should manage around $2 billion, according to Pineda. According to the regulator, the assets managed by Chilean mutual funds at the end of September were around $60 billion.

The business started doing business in Mexico last year, and in July it bought the local fund distributor Invermerica for an unknown sum. The corporation asserts that just in the previous month, its assets under management there increased by 45%.

The fintech startup presently uses passive investing, primarily exchange-traded funds or ETFs, to manage $700 million in assets for more than 72,000 consumers.

Funding of Fintual

Earlier this year, Fintual received roughly $15 million in a series A investment from Kaszek Ventures, and soon after that, Sequoia got in touch with them to express interest in investing in the business, according to Pineda.

Fintual is to introduce a “group investing” platform this year that would enable customers to pool their resources for a single objective. While still having authority over their personal portion, participants will be able to monitor the development of the group investment. Friends will be able to put money aside for a trip together, projects, or other purchases.

In Latin America, venture capital investments have reached record highs as investors seek alternatives amid erratic equities and fixed income markets, and political unrest. According to The Association for Private Capital Investment in Latin America, Lavca, venture capital investments totaled $5.1 billion in the third quarter alone, increasing the year-to-date total to a record $11.5 billion.

Conclusion

Kaszek, ALLVP, and Y Combinator are a few other funds that have previously made investments in Fintual. A total of $57 million has been invested in the fintech so far.

Asset management Fintual provides many financial services, mostly investments, and savings. It is the only business of its kind in Chile and Mexico that can fully digitally onboard new consumers. Both countries have laws governing Fintual.

Chile’s fintech sector is growing at a rapid rate, and it has attracted some major investors. Chile’s financial system is also fairly advanced by Latin American standards, with a number of banks with retail operations across the country. It’s also worth pointing out that Chile’s financial system is very well integrated with the global market, thanks to its membership in the OECD.

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