Mexican fintech firm Klar has raised $190 million in a Series C funding round, boosting its valuation to over $800 million.

This financing comprised $170 million in equity and $20 million in venture debt. The round was led by US-based private equity firm General Atlantic, with participation from existing investors such as Prosus, IFC, Mouro Capital, and Quona Capital. New backers included Santander Group, Grupo Televisa, and Grupo Formula.

The funds will be directed towards enhancing Klar’s operations in Mexico, focusing on product expansion and growth initiatives, according to a company representative.

Mexico’s Fintech Sector Gains Investor Attention

In 2024, Mexico witnessed $865 million in fintech investment across 50 deals, accounting for 74% of all venture capital invested nationally. This represents a significant upsurge in investor interest compared to previous years.

The Mexican fintech ecosystem has grown from over 300 startups in 2018 to more than 1,000 by mid-2025, with 803 being domestic companies and the rest targeting the local market. Mexico is now catching up with Brazil, traditionally the regional leader in fintech investment.

Domestic fintech firms are gradually shifting their focus from rapid growth to profitability. Klar is reportedly nearing $300 million in annual revenue as it continues this shift towards sustainability.

Fintech Challenges and Market Dynamics

Despite the expansion of financial services, challenges related to financial inclusion remain. Approximately one-third of Mexico’s population remains unbanked, and many small and medium-sized enterprises struggle to secure credit. According to the World Bank, only 37% of adults in the country have access to a formal bank account.

Cash continues to be the primary payment method for over 70% of adults, although digital transactions are increasingly common. Mexico’s payments market is forecasted to grow from $103 billion in 2023 to $168 billion by 2028, driven by greater adoption of digital financial tools.