Choosing and moving to a new country can be difficult, and it's even harder if you're not familiar with that country's banking style.
The increase in immigration to the U.S., with a total of about 50 million foreign-born people currently living in the U.S., presents an opportunity for startups to tailor financial services to this population, according to the Center for Immigration Research, an immigration think tank. It becomes. For example, companies like Comun, Maza, Alza, and Welcome Technologies help Latino immigrants open bank accounts.
Magnus Larsson, himself an immigrant from Sweden, encountered similar problems and founded Miami-based Majority in 2019 to address them. For a monthly fee of $5.99, immigrants can open a bank account and get access to a debit card, community discounts, fee-free international transfers and discounted international calls. There is also a paid peer-to-peer feature.
Your account does not require a social security number or U.S. documents, just an international government-issued ID and proof of U.S. residency. There are also no overdraft fees or minimum balance requirements. In addition, users have access to Majority's “Advisor Program,” a network of trained support staff across the country who are themselves immigrants.
“For many of our customers, we are their primary relationship when it comes to financial services and connectivity services to their home countries,” Larson told TechCrunch. “Many immigrants are burdened by a number of predatory fees. For financial services, remittances, and moving funds across borders, you pay fixed fees, but we cover other fees.”
Magnus Larsson, Founder and CEO of Majority. Image credit: Majority
Majority's approach has been well-received, and the company has tripled its revenue and doubled its number of users over the past year. Majority's annual recurring revenue reached $40 million in April, with new deposits reaching $200 million a month, Larson said. In 2023, overall trading volume increased by 5 times and remittances increased by 4 times. Remittances are a way for someone in the United States to send money to someone across the border, such as a family member in their home country.
TechCrunch has followed Majority's growth since it closed a $19 million seed round in 2021. The company has since raised multiple rounds of funding, including a $27 million Series A and Series B, and most recently a $9.75 million round in 2023, which included backing from existing investors Valar Ventures and Heartcore Capital.
With this growth in mind, Larson considered raising additional capital to prepare for further growth. Of the $20 million in capital raised, $12.5 million is in equity and another Series B tranche. The round was led by fintech founders including Klarna co-founder Victor Jacobsson and Swedish serial entrepreneur Hjalmar Winbladh. Valar Ventures, Heartcore Capital and another existing investor, Avid Ventures, joined again, as did Zettle co-founders Magnus Nilsson and Jacob de Geer.
The remaining funding was $7.5 million in loans from unnamed banks. Majority has raised a total of $90 million in equity investments to date. Larson also declined to disclose the company's valuation, but said the latest round of funding was a flat round.
Additionally, the company recently hired Avi Paba as chief risk officer. Mr. Paba previously served as credit risk manager for Apple's Apple Card. He will support Majority's future product expansion efforts.
Larson plans to use the new funding to continue product development, including helping users establish credit scores and access credit products. The company is also building attrition products to improve risk management.
Larson said the latest funding is also the final step toward monetization.
“That's always been the goal, and it could happen as early as next year,” he said. “We're at a stage where we know our customers well, we know they love our products, and we know how to successfully expand this market. What we're doing is , to help people grow and succeed better and faster. This is what we need, and we're looking at how we can build this for 300 million people in the future.”