Financial institution and AI-driven platform for Latin American SMEs, Kapital, has secured up to USD 100 million in a Series C funding round, valuing the company at USD 1.3 billion.

Kapital’s Funding Details

The round was led by Tribe Capital and co-led by Pelion Ventures, with additional participation from Y Combinator, Marbruck Ventures, and True Arrow. The capital will be used to speed up the development of Kapital’s integrated AI-driven financial ecosystem aimed at enhancing SME performance across Latin America.

Following previous funding rounds, including a Series B and debt financing in December 2023 that raised USD 165 million, Kapital plans to leverage this new capital for research and development, focusing on improving cross-border offerings and expanding its product range to offer actionable insights to customers.

Kapital’s Development Strategy

Built as a technology-first bank, Kapital’s infrastructure is designed to be efficient, scalable, and automated. This enables the company to introduce new products natively while also acquiring traditional institutions, modernizing their systems on its stack. According to Kapital, this results in higher margins, longer customer lifetimes, and lower loss ratios compared to fintech firms without banking licenses or infrastructure.

By becoming part of a growing group of unicorns from Latin America, Kapital aims to support its growth through the combination of a banking license and proprietary software. Following a regulatory-focused approach ensures that each step of expansion aligns with policymakers’ requirements, facilitating further advances in tech-enabled banking across the region.

Kapital has already scaled its balance sheet and reached 300,000 customers across the US, Mexico, and Colombia. The company intends to continue modernizing infrastructure through AML and KYC compliance, machine learning, and AI-driven risk management systems.