Ualá receives 300 million dollars in financing and much of the money will be used in Mexico

The financing round was led by Allianz and is the largest transaction that has been made in Latin America in the last three years.

Other investors such as Stone Ridge Holdings Group, Tencent, Pershing Square Foundation, Ribbit Capital, Alan Howard, Goldman Sachs Asset Management, Soros Fund Management LLC, Rodina, SoftBank Latin America Fund, Jefferies, D1 Capital Partners, Claure Group also participated in the round. , AlleyCorp and Monashees.

The strategy of this financing round seeks for the company to achieve profitability in 2026 and for the customer base to surpass Argentina, where the firm has more than 6 million users, highlighted Barbieri.

The businessman added that the 300 million dollars will also strengthen the Colombian market and a smaller part of the Argentine market, where Ualá has already achieved profitability. “Mexico is a country almost three times the size of Argentina. So we believe that it is a matter of time, I believe that by 2027, Mexico can be bigger than Argentina,” he added.

To achieve growth and compete with other players, Ualá considers that its value proposition is in the banking license it has after having purchased ABC Capital and with which it can compete with payroll products.

“It is the combination of payroll portability, performance accounts and credit cards. That is, credit, investment and a commission-free account enhanced by a banking license that allows you to have the security of IPAB insurance that fintech companies do not have,” he highlighted.

Only financial institutions in Mexico have insurance for savers that protects their savings up to 400,000 UDIS, which represents more than 3 million pesos, an insurance that is far above what figures such as Sofipo offer, which is 25,000 UDIS. .

Regarding payroll portability, Ualá is growing this segment between 20 and 30% per month, which gives them the lead compared to their competitors.