Majority Raises $27M Series A to Expand Mobile Banking for Migrants

MAJORITY Secures $27 Million in Series A Funding

MAJORITY, a mobile banking platform designed for migrants arriving in the United States, announced Tuesday the completion of a $27 million Series A funding round. Valar Ventures spearheaded the investment, with participation from existing investors.

Recent Funding and Expansion Plans

This new capital arrives only six months following a $19 million seed funding round, bringing the company’s total funding to $46 million. Founder and CEO Magnus Larsson explained that the funds will be allocated to expanding the advisor program, particularly within Florida.

Furthermore, MAJORITY intends to refine its “know your customer” (KYC) procedures and remittance capabilities to effectively serve larger Hispanic communities across the U.S.

New Account Access for Migrants

A significant development announced by MAJORITY is the introduction of a feature enabling users to open bank accounts without a Social Security number. Instead, applicants can utilize government-issued identification from their country of origin, alongside proof of a U.S. address.

This new functionality aims to circumvent lengthy and complex identity verification processes that often prevent migrants from accessing essential banking services.

Team Composition and Growth

The company’s team currently comprises approximately 45 technology and product specialists located in Stockholm, Sweden. An additional 20+ employees are based in the U.S.

MAJORITY also utilizes a network of “hundreds” of local advisors who provide onboarding and support to migrant communities in their native languages, as stated by Larsson.

Founder’s Background and Future Location

Magnus Larsson, the founder of MAJORITY, is a Swedish immigrant to the U.S. with prior experience as CEO of a major Swedish telecommunications firm. He previously launched a venture focused on affordable international calling.

Currently awaiting visa approval, Larsson plans to relocate from Stockholm to Miami to oversee the expansion of MAJORITY’s marketing and branding initiatives.

App Features and Cost Savings

Founded in 2019, MAJORITY caters to the over one million migrants who relocate to the U.S. annually. The app, available for a monthly fee of $5, offers several benefits.

• An FDIC-insured bank account with no overdraft charges
• A debit card providing community-specific discounts
• Fee-free remittances
• Cost-effective international calling

The company reports that its Cuban members save an average of $21 per month, while Nigerian members save approximately $10 each month, beyond the membership cost, due to the service’s efficiency.

Geographic Focus and Community-Specific Services

While the app’s core banking services are available nationwide, advisors are currently concentrated in Texas and Florida. These states serve as central hubs for many of the communities MAJORITY currently supports.

Larsson highlighted that various migrant communities tend to cluster in specific locations, such as Miami for Cubans, Washington, DC for Ethiopians, and Minneapolis for Somalians.

Expansion to New Communities

MAJORITY currently provides tailored services to around seven distinct migrant communities, offering culturally relevant features like discounts at local businesses. The company intends to extend its full product suite to an additional five or six communities in the coming months.

Growth Through Local Partnerships

Collaborations with local retailers have proven to be a successful strategy for growing MAJORITY’s subscriber base, which has reportedly increased tenfold in the past year. The company has not disclosed the total number of users on its platform.

Larsson described a typical scenario where potential customers can meet with an advisor outside a grocery store, complete the account setup, receive a Visa debit card, and even initiate a money transfer to another country, all within the store itself.