Banco Santander México SA is investing $57.5 million in financial technology startup Klar, through its venture capital fund Santander Innoventures, El Economista reported.
The transaction, which Santander México described as the largest seed round in Mexico's history, sees the lender inject $7.5 million in capital and $50.0 million in debt to the startup, according to the publication.
Klar has offices in Mexico City and Berlin and offers zero-commission debit and credit card products in Mexico, targeting unbanked sectors of the population. The company struck a strategic alliance with Mastercard and garnered support from Banco de México, which granted Klar permission to open accounts.
Manuel Silva Martínez, head of investments at Santander Innoventures, described Mexico's fintech market as in "full hatching mode."
"We have been impressed by Klar's team, its ability to execute and, above all, its ability to create experiences around the customer and develop an ambitious product vision," the executive, who will join Klar's board as an observer, reportedly told El Economista.
