US Banking Giant Citigroup Invests In Fintech Firm Rextie

Citi, a global banking giant, has made a strategic investment in Rextie. With this investment, Rextie has emerged as the first FX fintech in Latin America to secure an investment from a leading global bank.

Citi invests in Rextie

The offering comes with multiple benefits for Rextie users. The cutting-edge FX technology solutions offered by Citi will now be integrated into the currency exchange services provided by Rextie.

Rextie customers will also access CitiFX Pulse and Instant Payments. The service is highly beneficial to these clients because of its automation, higher liquidity, highly competitive rates, and real-time payments.

The deal is a significant milestone for the banking and fintech industries. It illustrates how these two industries can work together to reinvent and drive regional financial service innovations.

The Regional Head of Corporate Sales and Solutions for Latin America at Citi, David Gonzalez, said the deal was crucial for Citi as it demonstrated the value-added opportunities the bank could deliver to fintechs.

“This is a landmark transaction for Citi in Peru, our collaboration with Rextie shows the value-added opportunities that we can provide to fintechs. We are excited to deliver the power of our global FX network and tech solutions,” Gonzalez said.

By the end of next year, Rextie will have more than $7 billion traded in the platform since commencing its operations in Peru. The CEO and co-founder of Rextie, Mateu Batle, noted that the firm would divert its attention towards small and medium-sized businesses, including customers engaging in import and export activities.

According to Batle, the offering will accelerate the bank’s regional growth. Moreover, its robust business model and vision would consolidate Citi’s brand in Peru, Canada, and the Latin American region.

Citi noted that the Rextie investment was facilitated by its Institutional Strategic Investments (ISI) division. This division invests in fintech firms globally whose offerings align with the institutional businesses at Citi.

Fintech funding in Latin America increases

Fintech funding in the Latin American region has increased significantly. CB Insights released its Q2 State of Fintech report, showing that global funding in this industry had dropped by nearly half to $7.8 billion. However, the report noted that the Latin American region had posted a positive trend.

Latin America has recorded an increased interest in global investments in recent years. In 2022, VC investors invested $7.8 billion in the region through 1,114 deals. In the current year’s second quarter, fintechs in Latin America and the Caribbean attracted $500 million worth of investments, representing a 150% increase compared to the previous quarter.

One of the largest deals secured in the region during the quarter was on the Kross Wallet platform. The decentralized finance (DeFi) platform raised $100 million in a seed round. During the quarter, spend management startup Clara secured a $60 million raise, while Brazilian firm Liquido raised $26 million.