Latinx-led startup, Flourish Fi Closes $2.3 Million Round To Expand its Customer Engagement Platform for Banks and Fintechs
Flourish FI, latinx-led startup, raises new round and accelerates expansion across Latin America
The Latinx-led startup banking service provider, Flourish Fi, has raised a $2.3 million round led by Magma Partners. The fintech company, which was co-founded by Jessica Eting and Pedro Moura, will use the proceeds of this round of financing to further expand its presence in Latin America, its product capabilities, and its team.
Flourish Fi licenses technology to banks and fintechs to increase engagement and loyalty while helping people to develop better financial habits.
The round included participation from US and Latin American investors, such as Remarkable Ventures, Lightspeed Venture Partners Scout Fund, Canary, Seedstars, Kadmotek VC, I Am the Fund and mission-aligned impact investors such as Potencia Ventures, Amplifica Capital, Cap Table Coalition alongside angel investors Samir Goel (founder of fintech unicorn Esusu) and Mastercard president.
The startup was originally a direct to consumer app but pivoted to a B2B model in 2021 and raised a pre-seed of $1.5 million led by Brazilian venture capital firm Canary. Since 2021 they have been expanding their operations in Latin America (Brazil, Bolivia and soon Mexico) and with early adopters in the United States.
When it comes to financial technology innovation and business opportunity, Latin America is going through a unique time. This includes a push for new regulations (like open banking in Brazil), a nascent b2b fintech ecosystem, and there is fierce competition among financial institutions that raises the bar for new products.
“Since the pandemic there have been millions of people accessing financial products for the first time, and it takes an innovative set of banking experiences to engage and support individuals new to the system. There is no better time to truly influence the banking system to be more inclusive and responsible by offering products and experiences that drive the financial wellbeing of people.” explains the CEO Pedro Moura.
For one of the lead investors, Nathan Lustig from Magma Partners, Flourish is building a key b2b infrastructure for emerging markets. “The B2B fintech ecosystem is rapidly evolving in Latin America because of trends in embedded finance, open banking and increased competition. Both traditional banks and newcomer fintechs can benefit from Flourish Fi’s products in order to improve customer engagement, loyalty and personalization. I am thrilled to back the team!” Explains Lustig.
Since its last funding round, Flourish FI evolved from launching early pilots to signing multiple SaaS contracts with banks and financial institutions in Brazil, Bolivia, and the United States. The company is also about to announce its first Mexican financial institution. With the new funding, the company plans to expand its go to market strategy by focusing on mid-sized banks and fintechs in Latam. “The fintech ecosystem and open banking movement in Latam is an exciting scenario for our growth. We see Brazil leading the way in the region, and there are exciting opportunities throughout the region to build responsible and rewarding experiences for customers entering the banking system for the first time.” affirm Moura.
Flourish Fi offers a low code client engagement platform for financial institutions that creates personalized banking journeys by leveraging elements of behavior science, data intelligence and gamification.
Centered around customer communication, financial wellness and user engagement, the Flourish FI platform provides:
- A rewards and behavioral engine designed to incentivize responsible financial management practices, such as saving or investing money, paying loans and bills on time, and better understanding spending patterns.
- A financial knowledge module, where real-time data informs tailored insights that are delivered through a question-and-answer game.
- An intelligence hub that provides financial institutions with insights on its consumers that drive key business decisions.
Currently, the 20-person remote-first team has worked with 10+ financial institutions across the Americas and this new capital will allow Flourish Fi to continue to expand product capabilities, grow the customer base and make key business hires.
Scaling Impact
Co-Founders Pedro and Jessica, have a strong passion for empowering individuals with the tools needed to achieve their dreams and have been building the ecosystem and financial support to get it done.
Flourish Fi has secured a non-dilutive grant from Mastercard Center of Inclusive Growth to use its data-driven nudges for improved money management. The grant along with the current equity round brings its total funding to ~4.5M USD. Flourish’s approach to using behavioral science and AI-driven incentives and nudges alongside with the Mastercard collaboration will enable a new use case focused on supporting underserved microentrepreneurs in Brazilian favelas.
“With over 50% of the population in LatAm lacking access to adequate financial services, Amplifica Capital is excited to be investing in Flourish Fi who are providing innovative solutions to improve the quality of access, driving financial inclusion and increasing wellbeing by improving financial habits. We love the empathy and commitment of the founding team, Jessica and Pedro and look forward to supporting them as they grow in Latam and beyond.” explains Anna Raptis from Amplifica Capital, one of the funds that joined Flourish FI in this investment round.