Digital Bank Ualá Raises $300M to Grow Latin America’s FinTech Market

Latin America FinTech startup Ualá gets $300M Series E funding led by Allianz X bringing its valuation to $2.75B and mimicking traditional banking to extend digital finance to Latin America.

Another example of a neobank is Ualá from Argentina which received $300 mln during the Series E round with the participation of such investors as Allianz X, Tencent, and Goldman Sachs; as a result, the company’s value has reached $2.75 bln. Ualá, soon to become the largest growth equity round in the region, wants to strengthen its services in Latin America mainly in Argentina, Mexico, and Colombia.

Since 2017 Ualá has transformed the financial reality of more than eight million people by providing debit/credit cards, payment services, loans, and merchants. The possession of full banking licenses across Latin America allows the company to extend its services to people who never had access to banking facilities. In Argentina, 17% of the population uses Ualá, an al FI that has improved financial inclusion by leaps and bounds.

InsurTech, Strategic Growth and the Opportunity:

This is the first attempt of Allianz X in Latin America and future cooperation with InsurTechs using Allianz’s experience in insurance. Founder Pierpaolo Barbieri looks to deepen Ualá’s offering with the likes of UaláScore, an AI-generated credit scorer of over 2.7 million investors to help facilitate seven million loans.

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Working in a Competitive Environment:

As FinTech gains momentum in Latin America, Ualá has to compete with new-born and traditional bank players looking to offer their digital services. These markets also absorb the economy’s volatility as Ualá envisions targeting others such as Colombia. However, the regulatory licenses and partnerships that Ualá have given it a good standing for overcoming these challenges while simultaneously building customer loyalty.

Looking Ahead:

Ualá welcomes 2021 with its powerful support and a focus on financial inclusion as a tool for reinventing banking in Latin America. Allianz X partnership not only fortified Ualá’s standing but might also have discovered a fresh revenue stream in InsurTech, improving product offerings for the unbanked in the region.

Image Credit: Ualá