Mexican challenger bank Albo raises $40 million in Series C funding

It was a little less than two months ago when Mexican neobank acquired Delt.ai for $20 million, a Y-Combinator fintech company deeply rooted in the Mexican market, specializing in providing financial services to both consumers and SMEs – sending ripples throughout the financial industry.

Now, it has announced a $40 million Series C funding round, led by Morpheus Ventures, that would allow the neobank to enhance its fintech platform, and make it more efficient and secure for customers, clients, and small to medium-sized businesses (SMBs) across the region.

Albo, founded in 2016 and headquartered in Mexico City, offers a range of personal and business financial services, including personal and business debit accounts, credit services, payroll management, savings accounts, and cryptocurrency trading, all without charges or commissions. The company boasts a user base exceeding two million customers and processes an impressive $6.5 billion in annual transactions.

The company boasts over two million customers and processes an impressive $6.5 billion in annual transactions. It also successfully raised a $45 million Series B funding round in December 2020. To date, it has raised a total of $112.1 million in venture funding, according to Crunchbase data.

With this latest funding, Albo aims to achieve profitability by 2024, potentially becoming Mexico's first profitable neobank. CEO Ángel Sahagún sees this funding as pivotal for Albo, enabling the expansion of its product portfolio and the development of innovative solutions and strategic partnerships.

The round also saw participation from Valar Ventures and Nazca Ventures, highlighting strong investor confidence in Albo's offerings.