Banking

Argentine fintech Ualá purchases Mexican bank ABC Capital

Argentine monetary services start-up Ualá has actually reached a contract to purchase Mexican bank ABC Capital SA, as part of its quote to keep growing abroad.

Photo by CanStock

Ualá, which was valued at $2.5 billion in its newest funding round, will get 100% of Monterrey-based ABC Capital, according to its creator and president Pierpaolo Barbieri. As part of the deal, ABC’s existing investors will end up being minority investors of Ualá. The worth of the deals were not revealed, and the purchase goes through approval from Mexico’s regulators.

“Our commitment to financial inclusion in Mexico is absolute,” Barbieri stated from Mexico City. “The acquisition of ABC bank will allow us to offer a far wider variety of financial services within our ecosystem, as well as greatly accelerate our growth in the Mexican market.”

For Ualá, which offers a variety of monetary services through a mobile app, the offer will consist of access to ABC’s bank license, permitting it to improve the variety of services it can provide in Mexico. The purchase likewise marks the business’s 2nd collaboration with a bank to grow its service. In April, it reached a contract to purchase Argentine digital bank Wilobank, an offer that is likewise pending regulative approval in your area.

Ualá introduced operations in Mexico in September 2020 and has actually currently provided 350,000 pre-paid cards there. It’s the most recent South American business to delve into Mexico’s dynamic banking sector, where a growing group of start-ups are combining as they handle huge international banks that control the nation. MercadoLibre Inc is growing rapidly in the Mexican fintech area while Nu Pagamentos, or Nubank, is going into the nation backed by JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp.

Still, neither has a banking license, with Nubank revealing in September that it purchased a non-bank lending institution in the nation.

Ualá is backed by heavyweights consisting of Japanese corporation SoftBank Group Corp, Chinese Internet giant Tencent Holdings Ltd., and billionaire George Soros.

Monterrey-based cement maker Cemex SAB de CV is among the leading investors in ABC Capital, according to its site.

— By Carolina Millan and Jorgelina do Rosario



Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

Related Articles

Back to top button