ImpactAlpha, January 21 – Three-year-old online bank Albo has raised $7.4 million in Series A funding led by Latin America-focused venture capital firm Mountain Nazca with backing from Omidyar Network and Greyhound Capital.
Albo is among a growing crop of so-called “neobanks” that are accelerating access to financial services for Latin American adults. The bank offers no-fee basic services, like payments and transfers. It currently has about 60,000 customers across Mexico who transact about 1.3 billion pesos ($65 million) per year, the publication Expansion reports. The Series A funding will be used to expand its customer base and also to develop new products, like credit and savings accounts.
Albo’s funding follows several notable investment rounds from other digital banks, including Tencent’s $180 million investment in Brazil’s Nubank and Argentina-based Ualá $34 million round led by Goldman Sachs.