Colombia-based FinTech Minka secured $24 million in capital on Thursday (April 28) through a funding round that it will use to continue modernizing its clearinghouse and central bank infrastructure and expand its network with a full-service publishing and money transfer platform. .
Tiger Global and Kaszek led Minka’s fundraising effort, according to a Financial IT report. The company enables banks, clearinghouses and organizations to publish and exchange payment balances, the report notes.
The Minka Network connects legacy systems through blockchain concepts and modern application programming interfaces (APIs) to streamline the movement of money, enabling a nearly limitless number of use cases and helping money move securely, instantly and without the need for reconciliation.
Minka’s Transfiya project, a partnership with ACH Colombia, is one of the fastest growing real-time payments projects in Latin America. It includes direct read and write API access to 80% of accounts in the country, making it the largest open banking project in the region, according to the report.
“We aim to connect the world’s balances via the web using shared and connected ledgers,” Minka CEO Domagoj Rozic said in the report. “The project in Colombia has proven that it is possible and has become one of the fastest growing real-time payment networks in the region, allowing previously slow money to move instantly and at a cost minimal.”
Nearly 2 million people use the Transfiya project to send money using a phone number, and it will soon support one-click purchases, payments and collections.
Earlier this month, Nubank, Latin America’s largest listed bank, announced it was investing in a $650 million line of credit to expand into Colombia and Mexico.
Related: Nubank invests $650 million to expand into Colombia and Mexico
The new funds are a three-year line of credit in Colombian and Mexican pesos funded by Citigroup, Goldman Sachs, Morgan Stanley and HSBC, all of which subscribed to Brazil-based Nubank’s initial public offering (IPO) in December 2021. .
At the time of the IPO, the company said the $2.6 billion it had raised would help it expand into Colombia and Mexico. Nubank, which is also backed by Warren Buffett’s Berkshire Hathaway, said the funding will go towards technology and product development, hiring and expanding its customer base.