Remittance startup Felix Pago has secured $75 million in a Series B funding round led by QED Investors, with plans to expand into additional Latin American markets and broaden its suite of financial products.
Based in Miami, Felix Pago processed over $1 billion in money transfers via its WhatsApp-based platform in 2024.
The company now aims to enter Colombia, Ecuador, and Peru, while evolving beyond remittances to offer services such as credit and savings accounts.
“We want to move from only offering remittances to becoming a complete platform to use that money,”
said Chief Executive Officer and co-founder Manuel Godoy in an interview with Bloomberg.
He added that the company may consider acquisitions to help realise its ambitions.
Founded in 2020, Felix Pago currently operates in Mexico, El Salvador, Guatemala, Honduras, and the Dominican Republic.
The startup is seeking to eat into the market share of legacy remittance players like Western Union and MoneyGram, tapping into the $160 billion sent to Latin America annually.
Remittances are a vital source of income for several lower-income Latin American countries, accounting for over 20% of GDP in both Honduras and El Salvador, according to the Inter-American Development Bank.
Other participants in the Series B round include Monashees, Switch Ventures, Castle Island, and HTwenty Capital Innovation.
The company did not disclose its current valuation but said it is on track to achieve unicorn status in future funding rounds.
Notably, MELI Capital – the venture arm of e-commerce giant MercadoLibre Inc. and an early investor in Felix Pago – did not take part in this round.
However, Felix Pago maintains partnerships with MercadoLibre’s fintech arm, Mercado Pago, and digital bank Nu Holdings Ltd., to support user growth.
The funding arrives amid heightened scrutiny from US regulators seeking to clamp down on cross-border transfers that could be exploited for money laundering by drug cartels.
Godoy stated the company is closely monitoring the situation but has not adjusted its growth projections in response.
While stricter immigration enforcement under former US President Donald Trump initially slowed transactions in January, activity has since rebounded.
“Our users are making money to build their families’ homes in Mexico,”
Godoy said, adding that Latin American workers will continue to be essential to the US economy.
Felix Pago has experienced average monthly transaction growth of 20% in recent years and anticipates the sector will remain resilient despite increased regulation.
The company leverages stablecoins such as USDC to accelerate money transfers, with the average transaction valued at US$290.
Featured image credit: edited from freepik
