Mundi, a financial services platform for cross-border trading, announced today that it has raised $16 million in a Series A funding round led by Union Square Ventures.
According to partner John Buttrick, the investment is Union Square Ventures’ first B2B investment in Latin America. The New York-based company also backed fintech giants such as Coinbase and Stripe.
Equity financing comes after Mundic has secured a $100 million warehouse line from Silicon Valley Bank, bringing the startup’s total to $125 million in debt and equity since the start of 2020. Though remote at first, Mundi does have operations in Mexico City.
The startup has rebuilt its platform from scratch with the aim of insuring SME exporters in Mexico. It works by offering them working capital by paying them up front so they don’t have to wait 30, 60 or 90 days to get paid, according to CEO and co-founder Martin Pustilnick.
“This eliminates the risk of default by international buyers,” Pustilnick said. “In addition, customers see their exports increase by an average of 30% six months after working with us,” as they have the capital they need to take more orders from existing customers and take on new ones, Pustilnick added.
Mundi was founded in January 2020 and launched in July 2020. From From December 2020 to December 2021, the company says its monthly TPV (total processed value) grew 25x year over year and processed more than $120 million in invoices for its customers.
The mission statement is clear: to provide financial services to enable more cross-border commerce, Pustilnick told TechCrunch.
“SMEs face significant financial risks when trading internationally: lack of working capital, currency exposure and non-payment,” he said. “We are committed to reducing barriers to cross-border trade so that businesses can focus on selling their products and services.”
Mundi plans to use its equity to invest in new product launches, ‘aggressive’ recruiting and in acquiring and retaining customers. The loan capital goes to acquiring SMEs. The startup currently has about 130 employees, most of them remote.
Last year we held the $20.5 Million Nuvocargo . Fundraisera logistics startup to simplify the challenges of cross-border trade† Pustilnick said Mundi sees that company more as a potential partner than a competitor, as the former focuses more on logistics and Mundi on financial services.
“We are working with multiple logistics players to offer services with them,” he added.
Mundi plans to launch a new product line soon, FX, focused on multi-currency management with forward contracts and spot exchange rates. These new financial services are designed to enable its clients to protect their operations against currency movements and will be available in real time through Mundi’s web-based platform.
Pustilnick described FX as “the first 100% digital offering in LatAm that allows businesses of all sizes to lock in exchange rates up to a year in advance.”
Buttrick of Union Square Ventures, who joined Mundi’s board of directors as part of the investment, believes the company provides “key” digital financial products and software “that will significantly reduce trade barriers and costs for SMEs looking to sell their products internationally.”
Rexhi Dollaku, partner at Base10 who led the previous round, said his company is excited about †how great the opportunity is to modernize trade finance as well as the great team at Mundi.”
“Unless you’re a major exporter, you won’t have access to modern financial services like debt/working capital, instant payments, currency hedging,” Dollaku wrote via email. “Mundi is building the modern financial platform for trading, while others are only addressing part of the financial services opportunities.”