Comun Completes $21.5 Million Funding Round
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Latino-founded neobank, Comun, has announced the completion of a $21.5 million funding round. The fund comes after the firm raised$4.5 million in seed funding last December. The latest investment round was led by Redpoint Ventures, with contributions from other firms, including South Park Commons, RTP Global, FJ Labs, Costana Ventures, and Animo Ventures.
Comun was launched in 2021 by Andres Santos and Abiel Gutierrez. The firm is always stressing its goal of keeping financial services prices low, with no membership fees, overdraft charges monthly fees, or minimum balance requirements.
Comun Will Use The Funds To Expand Its Operations
The firm has also grown its active customer base by over 50% since it was launched. The firm has also introduced a remittance program, which has attracted more customers. Other additional services include increasing its bilingual support team and launching the largest cash depot networks in the U.S.
Chief Technology Officer at Comun, Gutierrez, stated that the firm has an elaborate product roadmap in 2024. With the latest funding round addition, the company is excited to expand its operations and deepen its relationship with customers.
He said the firm will continue providing excellent services, including ensuring that every customer has a great product, improving the firm’s fraud detection capability, and providing more options for customers to fund their accounts.
Comun’s focus is on serving immigrants in the U.S. The firm was set up after its two Chief Executive Officers were not satisfied with the kind of services they received as new immigrants in the U.S.
Comun Has Increased Its Revenue By Over 50% This Year
The market is already saturated with a number of startups, including Pillar, Maza, Welcome Tech, Majority, Bloom Money, and Tanda. Comun’s ability to raise funds back to back is a commendable feat, considering the amount of competition in the remittance industry.
According to PitchBook, the company’s valuation is estimated to be around $62 million. However, Santos said the firm’s valuation is now more than that by 50%.
Comun’s growth for a short time is what attracted investors, as the New York-based firm grew its monthly revenue by 50% month-over-month in the first six months of this year.
It indicates that the company is onboarding customers at a much faster rate than its competitors. Santos also stated that the firm has increased its revenue per user by 4x and grown its user base since the beginning of the year.
The firm was set up to offer solutions to financial exclusion for immigrants. Now, it has grown to offer other related services, including early paychecks, check deposits, instant cash withdrawals and cash payments at various locations, and other digital banking services.
