Majority, a mobile bank for migrants, closes third venture round in just over a year

Majority has raised tens of millions of dollars in equity and debt for its mobile bank for migrants nine months after raising a Series A round. In addition to the equity financing led by Valar and other existing investors, the company has raised $30 million in debt financing from a U.S. based commercial bank.

Over the course of a year, Majority has raised a $19 million seed, $27 million Series A and now a $37.5 million Series B round. Today's round feels a bit different according to CEO and co- founder Magnus Larsson.

He said they weren't planning to raise now. It's an easy choice if you get an offer to do a round when everything is shaky. A shuffling that could help Majority build a better team in the future is something the founder pointed out.

The majority makes money through their memberships. Free international money transfer and discounted international calling are offered by it. Over the past year, revenue has increased 5x, and monthly transaction value has increased 4x, but the company did not give any details on revenue.

He said that one of their conclusions was that they were building a product that people would pay for.

It's not hard to build an immigrant focused service. Fair, TomoCredit and Welcome are just a few of the well-funded competitors of the startup. Majority is focused on all migrants, unlike Welcome, which only focused on the Hispanic community.

Access for the unbanked is difficult to disrupt. Users can register for an account without a social security number or U.S. documentation if they have an international government-issued ID.

He said that they were building a digital product to solve an offline problem.

The startup has opened physical locations in Florida and Texas. The locations allow the team to be closer to the people it serves. Creating physical spaces has helped the Majority gain trust with consumers, showing that the company won't just show up, handle money and disappear in a few weeks Traditional banks are shutting down physical locations and branches in response to the wave of financial innovation.