Chilean Fintech Fintoc Secures $7M Series A Led by Propel VC

Chilean fintech startup Fintoc has raised $7 million in a Series A funding round led by Propel VC, bringing its total funding to $10.6 million. The company, founded in 2020, specializes in simplifying direct bank payments and enhancing online business transactions in Chile and Mexico.

Fintoc currently serves over 400 clients, including notable companies such as Unired, Rappi, and Larraín Vial. The fresh capital will enable Fintoc to consolidate its presence in Chile and further expand its operations in Mexico, where it launched just one year ago.

Why this matters: Fintoc's successful funding round and rapid growth emphasize the increasing demand for streamlined payment solutions in Latin America. The company's innovative approach to simplifying direct bank transactions has the potential to reshape the region's fintech landscape and support the growth of online businesses.

As a Y Combinator alum and B2B fintech startup, Fintoc aims to address key payment challenges in the Latin American market, such as high processing costs, low acceptance rates, and slow fund liquidation. The company has forged partnerships with financial institutions in Chile to enhance its payment products and plans to replicate this strategy in Mexico.

Propel VC, the lead investor in this round, expressed confidence in Fintoc's ability to tackle the complexities of the Latin American payment sector. "Fintoc's commitment to innovation and adaptability positions them well to make a significant impact in the region," said a representative from Propel VC.

With this latest funding, Fintoc is positioned to make Mexico its main market within the next 18 months. The company's focus on account-to-account payments and its growing client base demonstrate its potential to transform the way businesses manage and grow their operations in Latin America.

Key Takeaways

• Chilean fintech Fintoc raised $7M in Series A, totaling $10.6M in funding.
• Fintoc simplifies direct bank payments and online transactions in Chile and Mexico.
• Fintoc serves over 400 clients, including Unired, Rappi, and Larraín Vial.
• Funding will help Fintoc consolidate in Chile and expand in Mexico.
• Fintoc aims to address payment challenges in Latin America, backed by Propel VC.