Flink Raises $57M to Expand Financial Inclusion in Latin America

Flink Secures $57 Million in Series B Funding

Flink, a neobroker headquartered in Mexico City, has successfully completed a $57 million Series B funding round. This financing was spearheaded by Lightspeed Venture Partners.

This latest investment arrives just over half a year following Flink’s $12 million Series A raise, which was led by Accel. Existing investors, including Accel, ALLVP, and Clocktower, participated in the Series B round.

The Rise of Neobrokers

Neobrokers are innovative startups that are reshaping the investment landscape. They aim to broaden access to the stock market for a wider audience. This is achieved through more accessible investment options and user-friendly, mobile-first platforms for managing finances.

Globally, the number of these platforms is increasing, with examples like Scalable Capital, Bitpanda, and Trade Republic operating in Europe.

Addressing Financial Inequality in Mexico

Sergio Jiménez Amozurrutia, the founder of Flink, observed a significant disparity in his native Mexico. Despite a population exceeding 120 million, only a small percentage had the opportunity to participate in capital markets.

Amozurrutia viewed this as fundamentally unjust, believing that the existing financial infrastructure disproportionately benefits the wealthy. He recognized that this imbalance historically excluded many from potential wealth-building opportunities.

Following the sale of Easy Credit, a consumer lending platform co-founded with Rick Rafael Bueno, Amozurrutia embarked on a mission to provide Mexicans with access to a modern, app-based trading platform.

Flink’s Core Offerings

Flink launched its application in 2018, initially offering a wallet service and a global debit card, both digital and physical, powered by Mastercard.

Last year, the platform expanded its services to include the buying and selling of fractional shares, starting from just 30 pesos, and without any commission fees for NYSE-listed stocks.

“Users are able to begin investing with as little as US$1, and without incurring any commission charges,” Amozurrutia stated. “Our goal is to make Flink the most straightforward way to invest, save, and manage your money.”

Rapid Growth and User Demographics

The demand for Flink’s services is demonstrably strong. Since the launch of its brokerage product in July 2020, the platform has attracted 1.6 million users, an increase from 1 million at the time of its February funding round.

A significant 85% of Flink’s users are first-time investors. The platform is particularly popular among younger demographics, with 27% of clients aged between 18 and 25, and 22% being millennials.

Amozurrutia previously highlighted that most traditional Mexican banks serve less than 1% of the population, leaving the majority without access to banking or brokerage accounts. He emphasized Flink’s commitment to creating a financial system that benefits all Mexicans.

The company is experiencing monthly growth of 38% in its user base and 31% in revenue. User acquisition costs are reported at 62 cents, and Flink currently holds the position of the largest retail brokerage service in Mexico.

Future Expansion Plans

Flink’s team has grown to 110 employees, up from 25 a year ago. The newly acquired capital will be allocated to further team expansion, product development, and extending the platform’s reach to other countries within Latin America.

“The limited access to retail investing is a widespread issue throughout LATAM, and Flink is dedicated to changing that,” Amozurrutia explained. “We are focused on providing everyone in LATAM with the opportunity to invest and grow their wealth.”

Investor Confidence and Vision

Lightspeed Partner Mercedes Bent expressed her firm’s enthusiasm for Flink’s mission and its positive impact on Mexico’s financial landscape. She also noted the platform’s unique features, such as providing access to the U.S. stock market and enabling fractional share investments.

“Many existing platforms restrict investments to equities within one’s own country,” she pointed out. “Flink also places a strong emphasis on financial education and creating a user-friendly investment experience.”

Bent highlighted Flink’s podcast, “Finanzas en órbita,” as an example of its commitment to providing financial and stock market education in Mexico.

In a blog post, Bent and Will Kohler described feeling the company’s passion and vision for greater financial inclusion in Mexico, even during a virtual meeting. They stated that Flink’s vision extends beyond simply accessing stocks, and they were eager to be a part of it.

Flink represents Lightspeed’s third investment in Mexico, joining Stori and Frubana. Bent and Kohler indicated that further investments in the region are planned, expressing strong confidence in both Mexico and the broader LATAM market.