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Fintech platform for financial institutions Flourish FI raises US$2.3M to "bloom" in Latin America

November 25, 2022
Por
Finsiders
Finsiders
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North Bay Buisness
When talking to Finsiders in September, Flourish FI cofounder and CEO Pedro Moura revealed that the fintech would be about to close a new investment round, about a year and six months after the announcement of the first round.
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Now, the company officially announces that it has raised $2.3 million in a round that combined Venture Capital funds that traditionally invest in fintechs and B2B businesses with others focused on impactful solutions.

The new check was led by Magma Partners - which was already in the captable - and joined by investors such as Remarkable Ventures, Lightspeed Venture Partners (Scout Fund), Canary, Kadmotek Ventures, I Am the Fund, Potencia Ventures, Seedstars, Amplifica Capital, and Cap Table Coalition. Also participating were angels such as Samir Goel (cofounder of the American unicorn Esusu) and a president of Mastercard in one of its divisions around the world (the executive's name was not disclosed).

It is the second investment received by the fintech company, which raised a first investment of US$ 1.5 million in March last year in a round led by Canary and accompanied by Xochi Ventures, First Check Ventures, GV Angels, and Magma Partners. Angel investors such as Brian Requarth (founder of VivaReal and now Latitud), Rodrigo Xavier (former president of Bank of America and UBS Pactual) and Beth Stelluto (former VP of Charles Schwab) also participated,

   "We now talk to a large number of people. Compared to the current market scenario, [the round] is a huge success because we brought in good investors, with diversity, and the capital we need to execute while many companies are closing their doors," says Pedro, in an exclusive interview with Finsiders. "The money has already fallen into the account and we are investing carefully and cautiously," adds the founder.

With the resource, Flourish intends to accelerate growth, but "without putting kerosene on the fire," he jokes. The idea is to expand the technology team, recruiting especially professionals in data science and software engineering. The check will also be used for the fintech to start investing in marketing and sales. "We will grow with a strong foundation, working more on 'unit economics', and not grow just for the sake of growing."


Evolution

Founded in 2018 in California by Peter and American Jessica Eting, Flourish started with an app to help young Americans with financial education, the Flourish Savings App. Two years later, the business pivoted to a modular intelligence, loyalty and engagement platform for financial institutions, in the SaaS and low-code model. The goal remains to empower people to have better financial habits.

The fintech offers a solution that unites gamification, behavioral science and data from Open Finance to encourage positive financial habits among customers of financial institutions - primarily mid-sized banks and fintechs. Since pivoting, Flourish has developed projects for more than 10 institutions and now has clients in Brazil, Bolivia and the United States. "We are about to announce the first [client] in Mexico," says Pedro.

On the list of companies that have already used the fintech solutions are the Brazilians Qista (formerly Focus Financeira) and HerMoney; Banco Económico and also Banco Sol, in Bolivia; Banco Solidario, in Ecuador; and the Americans Tricolor and Commonwealth. Flourish has also worked on initiatives with Brazilian players such as Banco Carrefour and Sicoob. "We want to reach something like 25 to 30 institutions in the next 12 to 24 months," projects the founder.

According to him, Flourish's platform is currently consumed by about 100,000 end users, and the expectation is to reach 1 million, also in this timeframe. The entrepreneur does not disclose current revenue, but says that in the next 18 months the plan is to go from hundreds of thousands of dollars to millions of dollars in recurring revenue. "Now we're starting to tighten the screws."

In addition to increasing its customer base and expanding business among current customers (share of wallet), Flourish plans to bring its technology to financial institutions that have individual micro-entrepreneurs (MEIs) and small businesses as customers. The partnership with Mastercard will help in this regard. In July, the fintech was one of eight grant winners of the Strive Community Innovation Fund, a flagship innovation fund that will provide up to $1 million to startups chosen to develop digital solutions that enable small business growth.

This year, fintech was also selected to participate in two acceleration programs - Next, run by Fenasbac, and boostLAB, run by BTG Pactual.

Original Article by Finsiders

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Now, the company officially announces that it has raised $2.3 million in a round that combined Venture Capital funds that traditionally invest in fintechs and B2B businesses with others focused on impactful solutions.

The new check was led by Magma Partners - which was already in the captable - and joined by investors such as Remarkable Ventures, Lightspeed Venture Partners (Scout Fund), Canary, Kadmotek Ventures, I Am the Fund, Potencia Ventures, Seedstars, Amplifica Capital, and Cap Table Coalition. Also participating were angels such as Samir Goel (cofounder of the American unicorn Esusu) and a president of Mastercard in one of its divisions around the world (the executive's name was not disclosed).

It is the second investment received by the fintech company, which raised a first investment of US$ 1.5 million in March last year in a round led by Canary and accompanied by Xochi Ventures, First Check Ventures, GV Angels, and Magma Partners. Angel investors such as Brian Requarth (founder of VivaReal and now Latitud), Rodrigo Xavier (former president of Bank of America and UBS Pactual) and Beth Stelluto (former VP of Charles Schwab) also participated,

   "We now talk to a large number of people. Compared to the current market scenario, [the round] is a huge success because we brought in good investors, with diversity, and the capital we need to execute while many companies are closing their doors," says Pedro, in an exclusive interview with Finsiders. "The money has already fallen into the account and we are investing carefully and cautiously," adds the founder.

With the resource, Flourish intends to accelerate growth, but "without putting kerosene on the fire," he jokes. The idea is to expand the technology team, recruiting especially professionals in data science and software engineering. The check will also be used for the fintech to start investing in marketing and sales. "We will grow with a strong foundation, working more on 'unit economics', and not grow just for the sake of growing."


Evolution

Founded in 2018 in California by Peter and American Jessica Eting, Flourish started with an app to help young Americans with financial education, the Flourish Savings App. Two years later, the business pivoted to a modular intelligence, loyalty and engagement platform for financial institutions, in the SaaS and low-code model. The goal remains to empower people to have better financial habits.

The fintech offers a solution that unites gamification, behavioral science and data from Open Finance to encourage positive financial habits among customers of financial institutions - primarily mid-sized banks and fintechs. Since pivoting, Flourish has developed projects for more than 10 institutions and now has clients in Brazil, Bolivia and the United States. "We are about to announce the first [client] in Mexico," says Pedro.

On the list of companies that have already used the fintech solutions are the Brazilians Qista (formerly Focus Financeira) and HerMoney; Banco Económico and also Banco Sol, in Bolivia; Banco Solidario, in Ecuador; and the Americans Tricolor and Commonwealth. Flourish has also worked on initiatives with Brazilian players such as Banco Carrefour and Sicoob. "We want to reach something like 25 to 30 institutions in the next 12 to 24 months," projects the founder.

According to him, Flourish's platform is currently consumed by about 100,000 end users, and the expectation is to reach 1 million, also in this timeframe. The entrepreneur does not disclose current revenue, but says that in the next 18 months the plan is to go from hundreds of thousands of dollars to millions of dollars in recurring revenue. "Now we're starting to tighten the screws."

In addition to increasing its customer base and expanding business among current customers (share of wallet), Flourish plans to bring its technology to financial institutions that have individual micro-entrepreneurs (MEIs) and small businesses as customers. The partnership with Mastercard will help in this regard. In July, the fintech was one of eight grant winners of the Strive Community Innovation Fund, a flagship innovation fund that will provide up to $1 million to startups chosen to develop digital solutions that enable small business growth.

This year, fintech was also selected to participate in two acceleration programs - Next, run by Fenasbac, and boostLAB, run by BTG Pactual.

Original Article by Finsiders

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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