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Majority: Immigrant Banking Platform Raises $20M

Majority offers migrants a suite of essential financial services: a bank account, a debit card, community discounts, etc
May 23, 2024

Relocating to a new country is a daunting task, and the unfamiliarity of the local banking system can add to the challenge. Recognizing this, an increasing number of startups are stepping in to cater specifically to immigrant communities in the United States. With approximately 50 million foreign-born residents in the US, according to the Center for Immigration Studies, there's a significant opportunity for tailored financial solutions. Companies like Comun, Maza, Alza, and Welcome Technologies have already made strides in helping Latino immigrants open bank accounts. However, one company, in particular, stands out for its innovative approach: Majority.

Founded in 2019 by Swedish immigrant Magnus Larsson, Miami-based Majority offers a comprehensive suite of financial services designed specifically for migrants. For a monthly membership fee of $5.99, users gain access to a bank account, a debit card, community discounts, fee-free international money transfers, and discounted international calling. Additionally, Majority provides a peer-to-peer payment feature, making it easier for users to manage their finances both locally and internationally.

One of the most compelling aspects of Majority's service is the ease of account setup. Unlike traditional banks, Majority does not require a Social Security number or US documentation. Instead, an international government-issued ID and proof of US residence suffice. The accounts come with no overdraft fees or minimum balance requirements, making them accessible and user-friendly. Moreover, Majority's “Advisor Program” connects users with a network of trained support staff, all of whom are immigrants themselves, ensuring empathetic and knowledgeable assistance.

"For many customers, we are the primary relationship they have when it comes to their financial services and services to connect back to their own country," Larsson shared with TechCrunch. He highlighted that migrants often face predatory fees, especially when transferring money internationally. Majority aims to eliminate these extra charges, providing a fair and transparent financial service.

The impact of Majority's approach is evident. In the past year alone, the company has tripled its revenue and doubled its user base. In April, Majority reported $40 million in annual recurring revenue and $200 million in new monthly deposits. Transaction volumes increased fivefold, while remittances quadrupled in 2023. This impressive growth trajectory has been supported by substantial fundraising efforts. Since a $19 million seed round in 2021, Majority has secured a $27 million Series A and several Series B tranches, including a recent $9.75 million round in 2023 backed by Valar Ventures and Heartcore Capital.

To fuel further expansion, Majority recently raised an additional $20 million, with $12.5 million in equity led by fintech founders like Klarna co-founder Victor Jacobsson and Swedish entrepreneur Hjalmar Winbladh. The remaining $7.5 million came from debt financing. With a total of $90 million in equity funding to date, Majority is well-positioned for continued growth. The company also welcomed Abhi Pabba, former manager of credit risk for Apple Card, as the new chief risk officer to support product expansion efforts.

Looking ahead, Larsson plans to use the new funding to develop products that help users establish credit scores and access credit products, as well as build redundancies to better manage risk. Achieving profitability is within sight, potentially as soon as next year. "We know our customers well, we know they love our product, and we know how to scale this market effectively," Larsson said. "What we’re doing is making people thrive and succeed better and faster. It's something that is needed, and we are evaluating how to build this for 300 million people."

Majority's journey is a testament to the power of understanding and meeting the unique needs of immigrant communities, offering not just financial services, but a pathway to greater financial stability and success.

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