Kapital, an innovative global financial institution and the leading AI-driven platform dedicated to serving small and medium-sized businesses (SMBs) in Latin America, has completed its Series C funding round, securing up to $100 million. This funding has doubled Kapital’s valuation to $1.3 billion in just under two years, marking a significant milestone in its journey toward profitability.
The funding round was spearheaded by Tribe Capital and co-led by Pelion Ventures, with crucial contributions from renowned investors such as Y Combinator, Marbruck Ventures, and True Arrow. This influx of capital will play a critical role in accelerating the development of Kapital’s unified, AI-powered financial ecosystem, which aims to elevate SMB performance throughout the region.
What sets Kapital apart is its commitment to being a technology-first bank. Rather than the standard approach of patching software onto legacy systems, Kapital was designed from the ground up with a focus on creating robust financial infrastructure. Each component of their system has been built to be efficient, scalable, and automated.
This planning enables Kapital to innovate by developing new products directly on its advanced platform, while also acquiring traditional banks. By stripping away outdated infrastructure in these institutions, Kapital can rebuild them with its cutting-edge technology. The outcome? Higher profit margins, longer customer relationships, and lower loss ratios compared to many fintech companies that don’t own their banking licenses or technology.
Kapital’s strategic approach has already proven successful. The company has expanded its balance sheet to $3 billion and has reached a milestone of serving over 300,000 customers across the United States, Mexico, and Colombia. This remarkable growth not only highlights the strength of Kapital’s model but also its dedication to empowering SMBs in Latin America, providing them with the tools and resources they need to thrive in an increasingly competitive market.
KEY QUOTES:
“We are proud to join an elite group of unicorns emerging from Latin America. Kapital is already profitable, and our growth continues to accelerate through the unique combination of a banking license and proprietary software. By taking a regulatory-first approach and ensuring each step in our expansion is aligned with policymakers, Kapital is setting a new standard for tech-enabled banking in the region.”
CEO Rene Saul
“What makes our model possible is not just capital, but our ability to modernize infrastructure through advanced AML/KYC compliance, machine learning, and AI-driven risk systems. Kapital is emerging as the most forward-learning technology bank in the region – built on a foundation that is both financial and computational, designed to compound advantage with every product, acquisition, and customer we bring onto the platform.”
Chief Financial Officer Fernando Sandoval
