By Kylie Madry
MEXICO CITY (Reuters) -Mexican financial technology firm Kapital reached coveted “unicorn” status on Tuesday after its valuation topped $1 billion with a fresh funding round, following several high-profile purchases of more traditional banking operations.
Kapital closed a funding round led by Tribe Capital and Pelion Ventures, giving it access to up to $100 million, it said in a statement, with its total valuation topping $1.3 billion.
The company, headquartered in Mexico but incorporated in Delaware, also operates in Colombia.
The latest funding brings Kapital into the ranks of a handful of Mexican companies that have reached unicorn status, including used-car seller Kavak, crypto exchange Bitso and fintech Stori.
“Kapital is already profitable, and our growth continues to accelerate through the unique combination of a banking license and proprietary software,” CEO Rene Saul said.
In 2023, Kapital bought Mexican bank Autofin to sidestep the lengthy process of independently applying for a banking license.
Last month, Kapital announced it would acquire Mexican financial group Intercam’s brokerage, asset management and operational banking assets.
Intercam was among the firms targeted by U.S. sanctions in June “as primary money laundering concerns,” though Mexican officials said at the time that the U.S. had not provided evidence to back up the claim.
Kapital said it was working with U.S. and Mexican authorities to ensure compliance in the purchase, which will also involve a $100 million investment in Kapital’s banking operations once wrapped up.
(Reporting by Kylie Madry; Editing by Leslie Adler and Bill Berkrot)
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