Argentine fintech startup Tapi has successfully raised $22 million in a Series A funding round. The round was led by Kaszek Ventures, with participation from Andreessen Horowitz, marking a significant milestone in Tapi’s growth and expansion strategy.
Background
Tapi, founded by Tomás Mindlin, Kevin Litvin, Nicolás Andriano, and Bruno Cortinovis, focuses on improving payment experiences across Latin America. The company offers innovative payment processing solutions designed to integrate seamlessly with various fintech and consumer-facing platforms. Tapi serves prominent platforms such as Mercado Pago and the cryptocurrency exchange Lemon, facilitating recurring payments like monthly bills.
Funding Details
The $22 million Series A funding round aims to accelerate Tapi’s expansion in Latin America, particularly in Mexico, which is expected to be their fastest-growing market over the next two years. The fresh funds will be utilized to scale operations, enhance their technological infrastructure, and expand their customer base across the region. This round follows an initial $9 million seed round in 2022, also led by Andreessen Horowitz.
Tapi plans to leverage this investment to handle approximately $400 million in transactions this year, a significant increase from previous years. The company has around 70 employees, primarily based in Argentina, and anticipates processing up to 10 million transactions per month by the end of the year.
Tapi’s founders aim to address the region’s reliance on cash transactions, striving to provide more accessible and efficient digital payment solutions. The startup’s name combines elements from Mindlin’s first digital wallet project, TAP, and API, underscoring its technological foundation and mission to innovate financial services in Latin America.
Purpose of Funding
Tapi plans to utilize the $22 million raised in the Series A funding round to expand its operations across Latin America, with a significant focus on Mexico. The funds will be allocated towards scaling their technological infrastructure, enhancing their payment processing capabilities, and supporting customer acquisition. The company aims to handle $400 million in transactions this year, a substantial increase from previous years, and plans to process up to 10 million transactions per month by the end of the year.
Market Context
The Latin American fintech sector is experiencing rapid growth, with over 3,000 fintech firms operating in the region by the end of 2023, more than triple the number in 2017. This expansion is driven by increasing demand for digital payment solutions and financial inclusion initiatives. Despite a slowdown in venture capital dealmaking in Latin America, Tapi’s successful Series A round highlights the continued investor interest in innovative fintech solutions that address the region’s unique challenges and opportunities.
Conclusion
Tapi’s successful $22 million Series A funding round underscores the company’s pivotal role in transforming digital payment infrastructure across Latin America. With strategic support from investors like Kaszek Ventures and Andreessen Horowitz, Tapi is poised to significantly expand its operations, particularly in high-growth markets like Mexico. The company’s ambitious goal to handle $400 million in transactions this year highlights its commitment to financial inclusion and innovation. As Tapi continues to scale, it stands to make a lasting impact on the region’s fintech landscape, driving further advancements in digital payment solutions.
