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Morgan Stanley and West Coast Fund inject $100M into Mexican fintech giant Clip

Image credit: Clip

Clip, Mexico’s leading digital payments and commerce enablement platform, has announced a new investment round of $100 million. This funding comes from investment funds managed by Morgan Stanley Tactical Value (“MSTV”) and a prominent West Coast mutual fund manager. The investment values Clip at the same level as its Series D round completed in 2021.

The new investment will be used to accelerate product development initiatives and further Clip’s mission of driving financial inclusion in Mexico through innovative technology solutions. 

“This investment from globally renowned investors validates Clip’s opportunity to continue leading the digital transformation of Mexico’s commerce ecosystem,” stated Adolfo Babatz, Clip’s Founder and CEO. He emphasised their intention to leverage the funding to expand and strengthen their offerings, empowering more stakeholders within the Mexican economy.

Relatively, back in May, we also reported about how Colendi, a Turkish fintech company secured $65 million in a Series B funding round, that brought its valuation to $700 million. It’s an interesting read too.

What does the startup actually do

Since its founding in 2012, Clip has established itself as a one-stop shop for payment and financial solutions for small and mid-sized businesses (SMBs) in Mexico. Their product suite includes both software and hardware solutions, enabling SMBs to accept digital payments, manage online sales, access credit, and streamline operations. Clip currently holds the title of the country’s largest digital payments and commerce enablement platform based on the number of merchants it serves.

Pedro Teixeira, Managing Director and Co-Head of MSTV, expressed his enthusiasm about the partnership with Clip: “We are delighted to partner with Clip after following the company for several years. Clip is a pioneer in leveraging new technologies to drive financial inclusion in Mexico.” 

He highlighted Clip’s experienced management team, unique customer-centric culture, and track record of success as factors contributing to their decision to invest. MSTV joins Clip’s impressive investor base, which includes General Atlantic, Ribbit Capital, Goldman Sachs, and Softbank Latin America Fund, among others.

What do we think about the startup

Clip’s recent investment round reveals its position as a leader in Mexico’s digital payment landscape. The company’s focus on innovation and financial inclusion, coupled with the backing of prominent investors, positions them well for continued growth and success.

With this new funding, Clip has the potential to not only empower Mexican businesses but also reshape the financial landscape for millions of Mexicans who are currently unbanked or underbanked. As Clip continues to develop its offerings and expand its reach, it will be closely watched to see if it can achieve its ambitious goals of financial inclusion for all.

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