By Riley Kaminer
Immigration continues to drive U.S. population growth, despite our country’s declining birthrate. Of course, Miami and Florida more broadly are major focal points for this immigration – with more than half of Miami-Dade residents having been born abroad.
So it makes sense that migrant-focused neobank MAJORITY – with co-founders Magnus Larsson (CEO), Johan Dahlqvist (CTO), and Johan Granlund (COO) hailing from Sweden no less – decided to scale their startup in Miami.
Today, MAJORITY announced their $37.5 million Series B fundraise, led by Peter Thiel-backed Valar Ventures, a repeat investor. The raise is a mix of $30 million in equity from Valar and Heartcore Capital, on top of $7.5 million in debt financing from an undisclosed American commercial bank. The startup, which was founded in 2019, has now raised over $83 million.
Since Refresh Miami last caught up with MAJORITY, the company has opened a smattering of new locations: in Miami, Tampa, Hialeah, and Orlando – plus a store in Houston. The company reports that this year their revenue has increased fivefold, while monthly transaction volume has increased fourfold.
Users spend $5.99 a month to access MAJORITY’s various services, which include bank accounts, debits cards, international money transfers, and discounted international callings. Users are able to register without a social security number – an international ID and proof of US residence will suffice.
Larsson told Refresh Miami that this funding will enable MAJORITY to continue developing its platform and suite of services it offers, while also expanding its footprint.
Additionally, he signaled that the company will continue growing its headcount. Half of its 90 full-time employees are based in Sweden, while the other half are in the US – about 10 of which are in Florida. MAJORITY has an additional team of 300 local advisors that help its users navigate the various problems they face as immigrants.
Having a local presence is a key part of MAJORITY’s strategy. “It’s important to be a part of your community,” Larsson asserted. “Miami is a great example of that, where Hialeah is a focal point for the Cuban community. We’re there because we want to be part of the communities that we serve. And to really do that properly, we need to be there physically.”
While MAJORITY originally envisioned raising a Series B next year, Larsson explained that they jumped on the opportunity to land these funds sooner rather than later, given the current economic uncertainty.
These current economic challenges – particularly our ever-escalating inflation – provide an opportunity for MAJORITY to further help their clients, according to Larsson. “Our customers save between $10 and $30 or $40 dollars every month. I think that’s a good position to be in during a potential downturn.”
Valar Ventures’ founding partner James Fitzgerald agrees. “MAJORITY is unique in the way it provides members with a service dedicated to their ultimate success,” he said in a statement. “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.”
Miami holds a special place in Larsson’s heart, as he spent a year studying at the University of Miami during college. But it’s also a strategic spot from a customer acquisition perspective: “We’re quite excited to have our US headquarters here in Miami, the place with the highest number of foreign born people.”
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