Mobile bank for migrants Majority raised $37.5 million in a Series B funding round for expanding its suite of essential services as it continues its growth trajectory to support the nearly 50 million immigrants in the U.S.
The fresh infusion of capital was led by third-time company backer Valar Ventures, with $30 million in equity that included participation from Heartcore Capital. The round also included $7.5M in debt financing from an undisclosed U.S. commercial bank, according to a press release emailed to PYMNTS Wednesday (Sept. 14).
This funding round follows Majority’s $27 million Series A round nine months ago, bringing the bank’s total monies raised to $83.5 million. Since its Series A round, Majority has opened three new locations in Florida — Miami, Hialeah, Orlando — and one in Houston, Texas, to provide hands-on service and resources to migrants there.
“Given the country’s current financial standing, we are thrilled to provide tailored resources that meet the unique needs of migrants and ease the burden of transitioning to a new country,” said Magnus Larsson, founder and CEO at Majority.
“Our mission, as a company of immigrants for immigrants, has always been to provide migrant communities with the resources they need. This funding will help us refine our services and better support these underserved communities,” Larsson added.
Majority has seen monthly transaction volume among its migrant user-base increase four-fold this year and its revenue has increased 5x in the past year, according to the release.
To join Majority, members pay a monthly fee of $5.99 for a cross-section of immigrant-focused services that include a bank account, debit card, community discounts, free international money transfer and discounted international calling. People can sign up without a social security number or U.S. documentation. All they need to register for membership is an international government-issued ID and some proof of U.S. residence.
“Majority is unique in the way it provides members with a service dedicated to their ultimate success,” said James Fitzgerald, founding partner at Valar Ventures. “They are pioneering a new and improved way for the banking industry to meet and support the needs of their users all while championing an incredibly underserved community in the U.S.”