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Migrant-focused neobank Majority raises $20M

May 22, 2024
Illustration of a hand holding a bank building.

Illustration: Gabriella Turrisi/Axios

Majority, an immigrant-focused neobank, raised $20 million in a mix of debt and equity.

Why it matters: It's a neobank raising money despite the overall slowdown in consumer-focused fintech funding.

How it works: The Miami-based startup seeks to provide mobile banking services to U.S. migrants, particularly those from South and Central America.

  • It touts the ability to open an account without having a U.S. Social Security number, provided users have an international government-issued ID and proof of U.S. residence.
  • For a $5.99 per month membership fee, Majority also provides international money transfers with competitive rates, no-fee mobile top-ups, and international calling plans to users.

Zoom in: The new funding, which includes $12.5 million in equity financing, was led by Klarna co-founder Victor Jacobsson and Swedish serial entrepreneur Hjalmar Winbladh.

  • It also includes funding from Valar Ventures, Heartcore Capital, Avid Ventures, and iZettle founders Magnus Nilsson and Jacob de Geer.
  • Majority also secured $7.5 million in debt financing from an unnamed bank.

Flashback: Majority has raised over $100 million in funding since being founded in 2019.

  • In September 2022, it raised a $30 million Series B led by Valar Ventures, followed by a $9.75 million extension to that round last June.
  • In 2021, the neobank raised a $19 million seed round and a $27 million Series A.
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