Topics
modish
AI
Amazon
Image Credits:Félix Pago
Apps
Biotech & Health
Climate
Image Credits:Félix Pago
Cloud Computing
Commerce
Crypto
Image Credits:Félix Pago
endeavour
EVs
Fintech
Fundraising
Gadgets
gage
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
privateness
Robotics
Security
Social
Space
Startups
TikTok
Transportation
speculation
More from TechCrunch
result
Startup Battlefield
StrictlyVC
Podcasts
television
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Remittances from workers in the U.S. to their families and friends in Latin America amounted to$155 billion in 2023 . With such a huge opportunity , banks , money transfer companies , retailer and fintechs are all trying to make transfer more convenient on both sides of the transaction .
tight - growing startupFélix Pagois one of these players , and lately raised a $ 15.5 million Series A daily round of funding to grow its presence in Latin America and the U.S. , TechCrunch learned exclusively . Its principal port is WhatsApp , with a chatbot that makes it elementary to send and receive transverse - border money transference , even with a voice subject matter .
“ I like to say that WhatsApp is the operating system of the region , so it make sense that we establish something on WhatsApp to make it extremely easily , ” CEO Manuel Godoy told TechCrunch .
WhatsApp itself alreadyenabledpeer - to - peer transactions and the option for users to give businesses through schmooze , but only inBrazilandIndia . But a broader rollout would n’t be high-risk news for Félix and like solution likeBidSend , Leap FinancialandZapp — if users can use their card on WhatsApp , remittal would only be one click away , Godoy say .
Meta currently seems to see these third - party maturation favorably . Its WhatsApp for Business blog foreground theuse case of Nicaragua ’s LAFISE Bank , which built a virtual assistant in WhatsApp to make remittances smooth .
ButFélix Pagohas a broad purview . Other than WhatsApp , which they already have install , “ users do n’t have to download any app , ” Godoy said . On the U.S. side , users complete most of the transaction details via the WhatsApp chatbot ; it ’s only at the last step that they have to flick on a link to securely fill up in their debit carte du jour information . And on the other end , money can be collected instantly in local up-to-dateness as a coin bank depository , but also in cash at a computer memory .
Cash is often what recipients prefer , so Félix Pago adapted to that realness and made partnerships to have cash pickup truck locations in Mexico , Guatemala and Honduras . For an redundant $ 1.99 , “ the sender receives a reception with a unique ID turn and they send this reception to the beneficiary to show it to the teller so they can pick up the cash . ”
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
A lot more is happening behind the scene , thanks to in - theatre and third - party putz that Félix habituate to comply with its obligations and optimise its operations . There ’s KYC , AML and fake prevention ; and there ’s crypto , Godoy said .
Byusing Circle ’s USDC stablecoin , Félix Pago is able to make saving on foreign exchange that it can pass to users . USDC ’s 24/7 accessibility also cut Félix ’s pre - funding needs , enable it to make the first dealing free , as challenger Remitly and Western Union do . Félix then charge $ 2.50 on subsequent proceedings to Guatemala and Mexico , while it opted fortiered pricingfor Honduras . Overall , this makes fees much lower than on SWIFT transactions , which are also slower .
“ Crypto is a powerful enabler for remittance , but you have to purloin that from the substance abuser . The user does n’t handle about that . I always say that it could be a Equus asinus crossing the boundary line , it does n’t weigh . What they need is the money , the local currency and they desire it forthwith at the best possible damage . And crypto enables that on the back end . ”
Since Félix relies on USDC and crypto partners , Godoy retrieve the domain expertise of its young lead investor , Boston - base crypto fundCastle Island Ventures , make it a welcome increase to its jacket table . “ We ’re already leverage some of their portfolio caller to make our infrastructure more robust , and one of their partner , Nic Carter , is one of the moderate experts in USDC [ and ] stablecoins , so I think that gives us a lot of leverage . ”
Switch Ventures , the fund that lead Félix’spre - seed extension round in 2023 , also participate again , as did investors that took part in its previous $ 2.5 million pre - seed round , includingHTwenty , Contour and MELI Capital , the embodied venture working capital arm of Latin American e - commerce giantMercado Libre , whose partnership with Félix commit the inauguration a important cost increase .
Under that partnership , Mercado promotes Félix Pago to users of its defrayment platform Mercado Pago in Mexico . Those referral account for 25 % of its new users at the time .
A similar partnershipwith neobank Nubankfollowed , move over Félix ’s growth another bump . “ The coolheaded thing though , is that today we continue grow roughly 30 % month over month , but it ’s not just because of those partnerships , ” Godoy said .
Referrals are its main growth locomotive , but the company also relies on influencer selling and Facebook to make itself well have it off among its objective consultation in the U.S. So far , most of its user there are bluish - taking into custody Latino professional person working in construction , food and home plate services .
This pass water Godoy confident that Félix will remain complementary to Nubank and Mercado Libre , even as the latter thrive its fintech architectural plan . ( It is reportedlyseekinga banking license in Mexico . ) “ They do n’t have a product in the U.S. , so finally the sender is a Félix Pago client . ”
Félix Pago also hopes to help these client with more than remission . “ The vision that we have for Félix is to become the trusted fellow traveller for the Latino immigrant in the U.S. ” Its roadmap includes a credit builder and , finally , literal credit entry .
First , though , the inauguration will utilise its raw funding to blow up into El Salvador and Nicaragua , followed by the Dominican Republic and Colombia , and then the rest of Latin America . That ’s a necessary if Félix wants to move further on its roadmap and have an boundary on other society aiming for the same fleck .
“ To become that trust companion of the Latino in the U.S , we have to work the [ remittance ] problem for all Latinos , ” Godoy aver .
