Sequoia Capital led a $39 million round of funding for Chilean fintech and asset management Fintual. It is the venture capital firm’s first investment in Chile. The funds will help spur the fintech’s growth in Mexico, where it first appeared last year.
A month later, Fintual announced the acquisition of the Mexican fund distributor Invermerica for an undisclosed sum.
Pedro Pineda, CEO of Fintual, described the background of the negotiations, which started two years ago. They went for a trip to San Francisco, United States, with his colleague, Agustin Feuerhake, to meet other VC funds. They brought up the plan here.
Years previously, Pineda received an invitation from a friend to meet “the fiancé of a friend of his fiancée” for coffee. Jean-Denis, who would eventually work as Plaid’s CTO, was that “fiancé.” He was the one who initially introduced Sequoia partner Brian Schreier to Fintual. Pineda had more assistance during his time in the United States when he and his coworkers met Paul Graham, the creator of Y Combinator. He advised Sequoia to invest in fintech. That was the route taken to the initial meeting with the fund.
Fintual revealed a round led by Sequoia that surpasses similar stage rounds generated by other Chilean businesses after months and a worldwide epidemic, indicating that investors are placing a significant amount of money on the 2018-founded company. Pineda highlighted Doug Leone, Sequoia’s global managing partner, who said that Sequoia’s involvement is for the “next 20 years.”
They are a startup of just 100 workers with $700 million in investments from only 70,000 clients. They are also the first licensed banking institution in Mexico and Chile to offer 100% digital onboarding. To have Sequoia as a business partner for the ensuing 20 years is a privilege. Pineda said that Fintual could handle $1 billion in assets in Chile and Mexico over three to four months and $2 billion by the end of the following year.